Cross-Border Mergers and Acquisitions

SCOTT C. WHITAKER has been involved in over two dozen mergers and acquisitions totaling nearly $100 billion in value. His industry experience includes health care, financial services, telecommunications, gaming, hospitality, chemicals, oil and gas, industrial manufacturing, retail, and consumer durables. Scott has worked internationally in Canada, China, Europe, and Africa on a variety of assignments, and specializes in establishing Integration Management Offices (IMOs) and helping companies develop integration playbooks. He is the author of Mergers and Acquisitions Integration Handbook.

• Preface xiAbout the Author xvAbout the Contributors xviiPart One Cross-Border Strategy and Deal PlanningChapter 1 Cross-Border Deal Evolution and Rationale 3Gilles OurvoieThe Evolution of M&A and Cross-Border Deals 4Strategic Motives 23Factors Influencing Cross-Border Deals 28Chapter Checklist 42Chapter 2 Cross-Border M&A Strategy and Deal Planning Essentials 45Michael HolmM&A Strategy Overview 45Components of Cross-Border M&A Strategy 50Responsibilities and Accountability in the Organization 53Target Company Criteria 56Prepare and Plan for a Cross-Border Deal 59Chapter Checklist 63Chapter 3 Legal, Financial, Social, and Political Interdependencies with Cross-Border Integration 65Andrew ScolaIntroduction 65Legal Impact 68Financial Impact 78Social Impact 81Political Implications 82Managing External Risks and Issues 84Chapter Checklist 85Chapter 4 Trends and Leading Practices in Global M&A 87Thomas KesslerGlobal Transaction Trends in the Post–Financial Crisis World 88The M&A Life Cycle 89Developing a Succinct Cross-Border Transaction Strategy 92Matching M&A Strategy with Transaction Reality 98Selecting the Right Candidate 102Planning Cross-Border Due Diligence 105Defining Successful Options and Strategies for Mitigating Execution Risk in Cross-Border M&A Transactions 107Chapter Checklist 110Chapter 5 Cross-Border M&A: Region- and Country-Specific Trends and Deal Planning Tips 111Michael HolmIntroduction 111Some Useful Cross-Border Insights and Tips 118Understanding Corporate versus Country Cultures When Doing Cross-Border M&A Deals 120Chapter Checklist 123Part Two Cross-Border Culture and Leadership AlignmentChapter 6 Leading during Cross-Border M&A 127Scott WhitakerWhy Leadership is So Critical during M&A 128Leadership Responsibilities of Acquiring Companies 129Leadership Responsibilities of Target Companies 131Leadership Responsibilities of the Integration Management Office 133Symptoms of A Leadership Void and How to Address Them 134Leadership Leading Practices 136Chapter Checklist 137Chapter 7 The Role of Culture in Cross-Border M&A 139Christophe Van GampelaereUnderstanding Cultural Management 139Cultural Awareness 141Strategy and Culture 149Implementation 156Chapter Checklist 164Chapter 8 Managing National Reactions and Sovereignty Issues 167Gilles OurvoieThe Ambivalent Relation between Cross-Border M&A and National Interest 168Inward Cross-Border Deals: Key Restrictions 174International Differences and Similarities 189How to Deal with Sensitive Cross-Border Transactions 190Conclusion 196Chapter Checklist 198Part Three Cross-Border Integration, Planning, and ExecutionChapter 9 Managing Pre–PMI Due Diligence 203Eitan GrosbardIntroduction 204Traditional Due Diligence 206Integrated Due Diligence—360-Degree Due Diligence 219Conducting the Due Diligence Process 224Chapter Checklist 228Chapter 10 Ramping Up an Integration Management Office and Day One in Cross-Border Deals 229Stefan HofmeyerThe Impact of an Integration Management Office on Cross-Border Integration 229Understanding the Integration Management Office 232Establishing and Executing the Integration Management Office 237Day One: Starting the Integrate and Analyze Phases 247Chapter Checklist 250Chapter 11 Integration Decision Making and Process Strategy in Cross-Border Deals 251Stefan HofmeyerPreparation and Localization of Decision Making 251Primary Decision-Making Tools, Approaches, and Leading Practices 257Leading Practices for Global Integration Process Change 263Kaizen-Based Leading Practices 266Catching the Wave of Change 268Chapter Checklist 270Chapter 12 Post-Merger Integration Process, Methodologies, and Tools 273Thomas KesslerThe M&A Life Cycle 274Strategic Selection 275Integration Due Diligence 279Pre-Signing 281Post-Signing 283Post-Closing 293Chapter Checklist 298Chapter 13 Managing Post-Merger Integration Globally 299Eitan GrosbardIntroduction 300Due Diligence 305Relate 306Analyze 316Integrate 318Chapter Checklist 319Chapter 14 Country-Specific Trends and Tips for Integration Planning 321Christophe Van GampelaereOpening 321A Cultural Overview of the Most Active M&A Regions 323Anglo-Saxon Regions 324Asian Countries 328European Countries and Regions 334Summary 337Chapter Checklist 338Chapter 15 M&A and Post-Merger Integration Considerations for China and Japan 339Robert Ping Yu, Makoto Ideno, and Masaki YamamotoOverview of M&A Trends in China 339Issues and Approaches for Inbound M&A in China 343Issues and Approaches for Outbound M&A from China 353Chapter Checklist for Part 1: China 356Overview of M&A and Post-Merger Integration in Japan 357Issues and Approaches for Outbound M&A and Post-Merger Integration from Japan 358Issues and Approaches for Inbound M&A and Post-Merger Integration in Japan 361Chapter Checklist for Part 2: Japan 365Chapter 16 Cross-Border Synergy Program Management 367Michael HolmIntroduction 367Defining and Validating Synergies 371Structuring Synergy Programs 376Critical Actions to Capture Synergies 378Post-Closing Due Diligence 384Chapter Checklist 388Part Four Unique Cross-Border M&A Transaction ScenariosChapter 17 Managing Carve-Outs and Transition Service Agreements 391Andrew ScolaIntroduction to Divestitures and Carve-Outs 391The Context of Divestiture Impacts Carve-Out Processes 392Divestiture Program Overview 394Planning a Carve-Out and Transition 395Program Structure 398Managing the Transition Service Agreement 407Chapter Checklist 409Chapter 18 Joint Ventures 411Thomas KesslerThe Joint Venture Life Cycle 411Chapter Checklist 423Index 425