Many US companies are considering cross border transactions, some for the first time, as the value of the dollar strengthens worldwide. But they can also encounter challenges when taking the leap overseas. In this podcast, Mercer’s M&A experts Duncan Smithson and David Newman explain how to prepare for the unknown.
Duncan Smithson, Global M&A Transaction Services
David Newman, International Consulting Group Leader, North America
What are some of the challenges a company might face when embarking on a cross border M&A transaction?
A topmost consideration is that the ability to affect change in the workforce and the employment relationship is very different outside of the US. Potential hurdles can be legislative, cultural, or involve third parties like works councils and unions.
HR plays a key role in approaching these challenges. In some cases an acquired rights directive may constrain a company’s ability to make changes to an employee’s terms and conditions; in other cases, employers may need to gain consent from various representative bodies before implementing any changes.
Organizations don’t have to be sidelined by these issues, however. David outlines three considerations for employers.
“I think buyers should develop a clear understanding of the operating environment from an HR standpoint as they build their investment thesis and go through due diligence,” says David.
Learn the two other considerations for US buyers to prepare themselves for cross-border M&A: