Cross-Border Mergers and Acquisitions

CHAPTER 1 Cross-Border Deal Evolution and Rationale

Gilles Ourvoie

CHAPTER LEARNING OBJECTIVES—IN THIS CHAPTER, YOU WILL LEARN:

• How cross-border deals have evolved over time and what key lessons we can draw from such analysis.
• At the firm level, what the main strategic motives are for cross-border deals and to what extent microeconomic factors influence the success of a deal.
• More generally, what the main factors influencing cross-border deals are, from global to micro levels, and how they can be correlated with cross-border deal success.

CHAPTER SUMMARY

Mergers and acquisitions (M&A) transactions in general, and decisions to engage in a deal, are connected to a wide number of internal and external factors that have been thoroughly analyzed over the past century. Even if the specific analysis of cross-border deals is more recent and therefore limited, any decision maker should have a view of the main economic forces at stake and how they might influence the M&A and PMI outcome. Building on this knowledge brings as well a better view of the potential determinants of any cross-border deal, and how these determinants may be part of the due diligence process. This chapter aims ...