Cross border mergers: Attractiveness, apprehensions and achievability

Abstract

In the current scenario, this statement defines the very essence of business. Globalization has reached new levels wherein national boundaries are no longer a hindrance. While this renders the world as a flat and equally opportune in terms of commerce, there is an essential difference between the organizations across national boundaries. This is the cultural difference between the 2 organizations and is very significant in determining the success or failure of a merger. The organizations that merge cannot undermine the effects of having different values, culture, policies and legal environments and it will be an interesting task to identify how such companies deal with these differences. Another interesting aspect of these mergers would be to identify key trends in successful mergers and contrast them with the unsuccessful ones. Through this study our attempt is to be able to come up with a set of guidelines that must be catered to pre and post the merger, which will provide a sound foundation to a successful cross border merger. Our aim through this study is to gain an understanding of 3 aspects of cross border mergers. The three aspects and some key questions related to them are listed below. We have attempted to provide the answers to these questions below that largely define the scope of this study. Due to the vastness of this topic, we will limit our scope to the below mentioned queries and try to refrain from covering certain other aspects such as financial analysis or valuations so as to avoid any injustice to the topic.