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Middle Market M: Handbook for Investment Banking and Business Consulting by Michael R. Nall, Christian W. Blees, Robert T. Slee, Kenneth H. Marks

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CHAPTER 4

A Global Perspectivea

The globalizing economy has fueled middle market mergers and acquisitions (M&A) in the United States and abroad (see Figure 1.4 in Chapter 1). Companies are looking for new growth and survival markets as well as technology and innovation, and conducting business without borders increases the number of potential customers exponentially. Some companies, faced with continued pressure to grow profits and the added benefit of cash on the balance sheet, see these deals as virtually mandatory. However, these cross-border opportunities are substantially more complex than domestic acquisitions and require a different set of skills and a panoramic lens with which to view the transaction and its components.

Conducting strategic due diligence across borders, managing cultural differences, integrating across borders, and establishing a clear organizational structure and lines of responsibility are difficult yet critical to the success of cross-border deals. Difficult or not, it is clear that global M&A is here to stay and it is a reality business owners, corporate development teams, and dealmakers must adapt to. It is a new frame of mind, almost a new discipline, and is no longer just an option to ponder—it is the new reality. Businesses are being acquired by foreign investors, and that brings global competition to your doorstep. To some degree, it's buy or be bought. Engage or be engaged. Business leaders can't ignore opportunities abroad any more than foreign ...

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