This is the first in a series focused on navigating the waters of a cross-border acquisition. This edition focuses on the pre-acquisition phase, including how GAAP differences can impact valuation and how a company can manage the financial risk exposure that arises from a cross-border acquisition.
In today’s global economy, companies do not hesitate to look beyond their borders to find the right acquisition to grow their business. Buyers of foreign businesses need to have a comprehensive understanding of global accounting differences, regulatory requirements, foreign and domestic tax considerations, and the impact the acquisition will have on its financial reporting. A lack of knowledge in these areas could cause last-minute surprises that delay a deal’s timing and result in a buyer over- or under-valuing the target.