When companies from different countries merge, the process involves several stages and carries both advantages and disadvantages. The initial phase involves screening potential partners based on their strengths and weaknesses.
The possibility of incompatibility between cultures of two companies, especially in cross-border acquisitions
The possibility of problems with the personnel of the purchased company after the transaction
High risk in case of incorrect assessment of the situation of the company
The strategy is associated with significant financial costs, as usually involves the payment of bonuses to shareholders from the "Golden parachutes" staff
1.The complexity of the integration of companies, especially if they operate in different, unfamiliar to each other areas
Stages of merger
4. A pre-merger phase includes a screening of alternative partners based on analysis of their strengths and weaknesses
3.integration planning phase
based on the results of the due diligence phase planning for the new company is carried out.
2.A due diligence
focuses more in-depth on analyzing the potential benefits of the merger. Here product-market combinations, tax regulations, and also compatibility with respect to HR and cultural issues are of interest.
1.Use of new technologies
Advantages
Striving for high profits in low-tax countries
High social importance, causing the need for state support in case of difficulties and failures