scholarly journals CULTURAL DUE DILIGENCE IN M&A. IMPORTANCE OF SOFT RISKS FACTORS

10.26458/1724 ◽  
2017 ◽  
Vol 17 (2) ◽  
pp. 38-62 ◽  
Author(s):  
Iulian Warter ◽  
Liviu Warter
Keyword(s):  
Mergers And Acquisitions ◽  
Significant Rise ◽  
Current Understanding ◽  
Due Diligence ◽  
Corporate World ◽  
Cross Border ◽  
Coherent Image ◽  
Risks Factors

During the last decades, the corporate world has witnessed a significant rise in the number of cross border mergers and acquisitions (M&As).In cross border M&As, not only different corporate cultures collide, but also different professional and national cultures.The purpose of Cultural Due Diligence (CDD) is to get a coherent image of the intercultural challenges of the M&A in order to be aware of the intercultural risks and opportunities.This article aims to reveal the perception of managers involved in the pre-M&A stage on the soft risks factors that need to be investigated during CDD.This study proposes an appraisal of the most important intercultural issues that need to be considered in M&A.Our contribution to the intercultural aspects of M&A literature consists in improving the current understanding of Cultural Due Diligence content.

Navigating the human landscape in cross-border mergers and acquisitions

2016 ◽  
Vol 32 (9) ◽  
pp. 11-14
Author(s):  
Gordon D. Ray
Keyword(s):  
Mergers And Acquisitions ◽  
Design Methodology ◽  
Due Diligence ◽  
Open Communication ◽  
Content Type ◽  
Cross Border ◽  
Implementation Stages ◽  
Pertinent Information ◽  
Human Landscape ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Developing individual relationships to drive multilateral, open communication, has the greatest power to connect all levels of an organization to a unifying strategy. This should be a primary consideration in both the due diligence and implementation stages of a cross-border merger/acquisition to ensure a successful transition. The organization considering/executing the merger/acquisition should look inward first, to its own practices, to make necessary adjustments and establish a foundation for integration. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

2020 ◽  
pp. 81-94
Author(s):  
Alexandra V. Chugunova ◽  
Olga A. Klochko
Keyword(s):  
International Trade ◽  
Mergers And Acquisitions ◽  
Volume Growth ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Cross Border ◽  
Export Volume ◽  
Relationship Of ◽  
Geographical Diversification ◽  
The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

Cross-border mergers and acquisitions for innovation

2021 ◽  
Vol 112 ◽  
pp. 102320
Author(s):  
Po-Hsuan Hsu ◽  
Peng Huang ◽  
Mark Humphery-Jenner ◽  
Ronan Powell
Keyword(s):  
Mergers And Acquisitions ◽  
Cross Border
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