Categories: All - cultural - law - valuation - legal

by Анастасия Жесткова 5 years ago

238

problems of cross border merger

The process of cross-border mergers and acquisitions (M&A) involves numerous challenges that companies must navigate to ensure successful integration. These challenges include regulatory and legal barriers, such as understanding and complying with the product regulations and normative acts in the partner'

problems of cross border merger

Problems of cross-border merger

This mindmap attempts to investigate the obstacles associated with cross-border mergers and acquisitions (M&A). Companies have different reasons for choosing whichever option, either merger or acquisition. The basic motives for both choices are highlighted in the research. As mentioned earlier, there are various problems associated with growing through M&A even within the same cultural environment. Not surprisingly, the problems associated with cross-border M&A can be more difficult to overcome.



The strategy of merger

To clear the purpose of the merger

Integration after merger

To attach great importance to the integration after cross-border merger

Cultural barriers

National specific
Use multinational business etiquette
Religion barries
Language barriers
Choose two dominant languages (For example: Russian + English)

This mindmap attempts to investigate the obstacles associated with cross-border mergers and acquisitions (M&A). Companies have different reasons for choosing whichever option, either merger or acquisition. The basic motives for both choices are highlighted in the research. As mentioned earlier, there are various problems associated with growing through M&A even within the same cultural environment. Not surprisingly, the problems associated with cross-border M&A can be more difficult to overcome.

Law barriers

Product regulations
To study normative acts concerning regulation of the process of production and sale of products in the territory of the partner's country and to observe them
Valuation during cross-border mergers process
Evaluate the value of the company based on the value of all its assets and brand equity
Legal and accounting effects of cross-border mergers
During the merger process it is necessary to distinguish two important dates. The Directive’s and all Member States laws have to differentiate the validity of cross-border mergers according to accounting and legal view. The date of legal validity of cross-border merger is governed by the law of the State where the successor company is established. For effective merger of two companies it's nessesary to choose qualified lawyer that will face with all problems of companies.
Engineering standards
To carry out local engineering standards and produce goods based on them
Language laws
To study the peculiarities of the language law in the partner's country and observe them