Outlook for 2019: cross-border M&A and post-merger integration

According to a recently published article by Financer Worldwide, the number of cross-border M&A is expected to drop globally in 2019. A decline is expected to hit the mega-deals the hardest (i.e. transactions with deal values exceeding $10 billion) amid uncertainty over Brexit and the threat of global trade wars. Accordingly, acquirers are increasingly focusing on domestic deals rather than cross-border opportunities, and as corporate leadership remains bullish towards cross-border M&A, industry experts have suggested placing a greater emphasis on managing post-transaction integration issues. Why? Because poor post-merger integration can hamper value creation. A mismatch of cultural fit, particularly magnified in a cross-border deal, is often cited as the primary reason for failure to achieve synergy. The difficulties at the outset begin with an inaccurate understanding of the foreign target’s operations and any political and regulatory issues connected to the…

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