Cross-Border Mergers and Acquisitions

CHAPTER 2 Cross-Border M&A Strategy and Deal Planning Essentials

Michael Holm

CHAPTER LEARNING OBJECTIVES—IN THIS CHAPTER, YOU WILL LEARN:

• The components of a cross-border M&A strategy
• The responsibilities and accountabilities in the organization, to ensure the best decision possible
• What could be the target company criteria
• How to prepare and plan for a cross-border deal

CHAPTER SUMMARY

This chapter begins with a discussion of the inputs needed to formulate the components of an M&A strategy. Next is to set up the decision process with as much objectivity as possible. The chapter then goes into what could be the target company criteria and, finally, about how to prepare and plan a cross-border deal.

M&A STRATEGY OVERVIEW

When companies assess their growth plans (see Figure 2.1) the choices are to organically make, partner, or acquire an asset that will bring significant shareholder value. The M&A process is started when a company decides to buy an asset. The asset could be a whole company or parts of a company; for example, a factory and the rights to the products manufactured ...