Cross Border M&A Flashcards
Key factors of cross border M&As
Two different countries, assets and ops combined, the operation entails a change in control of the acquired company. Buyer’s core industry, paid mainly in cash, targets manufacturing firms
Drivers of cross border M&As
market imperfections, intangible assets, reduce tax expenses, improve governance, exploit differences in capital markets and currencies, diversification, time pressure, skill-access…
(Country factors dominant in emerging markets and industry factors in developed markets)
CAGE model
cultural, administrative, geographic, economic: lower distance between target and buyer in these aspects and higher is the export between them.
Key success factors
Strategic fit, high target profitability, high multiple targets, post-merger integration easier for smaller deals, private targets, marker reward serial acquirers; improving performance, remove excess capacity, market access, technologies, and skills, acquire early in life cycle.
