CFO Insight LLC
Everyone knows that to be global, you need representation in Europe… one of the largest economic regions in the world. And since English is the second language for many Europeans, how difficult can it be? Often, European executives visiting the US are likeable, and their actions are very similar to local executives.
It should be simple.
Some facts to remember. Most European Executives speak English – in addition to 1-2 other languages - and when meeting executives here in the US, they frequently adapt their actions to the host environment. They are accustomed to doing so since they frequently work in countries other than the home culture – Switzerland, France, Italy, Spain, Germany, Austria, Belgium etc. are a day’s drive apart. Culture, laws, economic environments differ throughout Europe, and if a US executive is unaccustomed to changes, negotiating, closing and integrating a transaction can be very challenging.
Overall M&A success statistics are dismal, and studies show that International M&A transactions have a worse-than-average success rate. There are several keys to success in international transactions
When involved in an international transaction, understand that it will be higher risk, and cost significantly more than a domestic transaction to complete. If you approach the international transaction as if it were a domestic transaction, you will likely under staff and under budget (time and cost) the transaction.
How do you find the right people to assist you in completing a transaction? Global law firms or CPA firms, or perhaps the local representatives from the US Commerce Department often refer qualified resources.
PS … these tips are effective for Asia and Latin America as well……