Cross-border M&A deals

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  • #128074
    Shiyun
    Participant

    What specific due diligence challenges have you faced in cross-border M&A deals? How did you overcome these obstacles?

    #128195
    Jiaxin Alethea Hong
    Participant

    Language and Cultural differences are some of the main challenges in cross border M&A. Usually we overcome these challenges by having a local representative who is familiar with the industry to be on the team.

    #128231
    Michael
    Participant

    Tax / tariffs should be considered and modeled into the total landed cost of goods when considering cross-boarder M&A deals. In particular between the USA & Mexico there is a tax incentive that should be considered. The IMMEX program, or Maquiladora, Manufacturing and Export Services Industry, is a Mexican government initiative that allows foreign companies to import raw materials and equipment duty-free to manufacture goods for export. Other countries have similar government arrangements such as FTZ (Free Trade Zone) that can reduce tax burden on the manufacture.

    #128767
    Julia
    Participant

    Financial Transparency and Accounting Standards. Different accounting standards, like IFRS versus GAAP, can obscure a clear financial picture. Financial information in cross-border deals may not align with local standards, making it harder to assess profitability and liabilities.

    I worked with financial advisors and auditors familiar with both accounting standards to harmonize and accurately interpret financial data. This dual approach helped in converting financials to a common standard, allowing for accurate valuation and analysis.

Viewing 4 posts - 1 through 4 (of 4 total)
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