Sincethe year 2000, there has been a noticeable increase in mergers andacquisitions among firms in different countries (termed cross-borderacquisitions). What factors could explain this increase? What specialissues can arise in executing a cross-border acquisition and inultimately meeting one’s objectives for a successful combination? -Course Outcome(s) Linked – 2
Sources: Outsidesource – Your initial post must include one source that you findyourself. This means that this source cannot be the assigned text or anyother material offered in this course. Your source must be scholarly,peer-reviewed, and no older than 8 years.
EXAMPLE:
Cross-Border Mergers and Acquisitions in 2022: A Checklist forSucceeding Purchases in the U.S. The assertion that 2021 was the mostactive year in merger and acquisition history was made public onSaturday, January 22, 2022 by Adam O. Emmerich and Robin Panovka ofWachtell, Lipton, Rosen & Katz. Global merger and acquisitionactivity would reach $5.8 trillion in 2021, the biggest annual volumeever. Growth may be influenced by a supportive regulatory environment, agrowing market, or successful marketing tactics. (“Cross-BorderM&A: 2022 Checklist for Successful Acquisitions in the U.S.,” 2022)
Sincebusinesses sought to pool their resources to compete more effectivelyin a challenging market, the COVID-19 pandemic may have led to anincrease in mergers and acquisitions. Terry Jackson discusses the COVIDimpact in Mergers and Acquisitions: COVID’s Influence as the WorldSpins. Many businesses have been negatively impacted by the epidemic,which has spurred them to try to grow through mergers and acquisitions.The current situation has been impacted by more liquidity, better accessto debt finance, and an increase in the number of problematicbusinesses. Yet, the epidemic has provided firms with the opportunity torearrange their business portfolios, scale back on operations, anddevise fresh strategies for capitalizing on the digitaltransition. (“Mergers and Acquisitions: COVID 19’s Impact as the WorldTurns,” 2023)
In the end, the pandemic has presentedopportunities and problems for companies wishing to combine or acquireone another. While the epidemic has inspired some companies to reinventthemselves and seize the opportunities presented by digitaltransformation, cross-border acquisitions still face significantchallenges because of cultural disparities, linguistic barriers, andcomplex regulatory frameworks.
Cross-Border M&A: 2022 Checklist for Successful Acquisitions in the U.S. (2022, January 22). Retrieved from https://corpgov.law.harvard.edu/2022/01/22/cross-border-ma-2022-checklist-for-successful-acquisitions-in-the-u-s/
Mergers and Acquisitions: Covid 19’s Impact as the World Turns. (2023, January 18). Retrieved from https://www.linkedin.com/pulse/mergers-acquisitions-covid-19s-impact-world-turns-jackson-ph-d-