Factors in Forming International Mergers and Acquisitions

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L J Soldinger Associates
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Larry Soldinger leads the certified public accounting firm L J Soldinger Associates and provides clients with strategies in the corporate planning and budgeting spheres. Larry Soldinger has extensive experience in tax matters and assists clients in complex mergers and acquisitions (M&A). One of the major considerations in any M&A undertaking is whether the transaction is international or domestic.

M&As that span country borders require an extensive due diligence and data collection process, which is necessary to ensure compliance with multiple countries’ regulations for international business. Risk factors range from differences in labor laws to health benefits and pension plans, as well as employment security regulations. In addition, there are cultural and societal factors to be considered in ensuring a seamless integration of diverse workforces.

Global companies that already have a subsidiary presence in the country have an inbuilt advantage, through first-hand operational experience. However, even if the subsidiary’s role in the M&A has been clearly defined in advance, there is considerable coordination and planning to perform. With any international M&A on the horizon, it makes sense to consult with a well-qualified advisor.