Due in part to a recent increase in globalization, there has been a boom in mergers and acquisitions occurring on the international scale and across borders. In fact, according to the Securities Data Company, over $672 billion in cross-border deals are announced annually – meaning international mergers and acquisitions represent one in four of all M&A activity.
Unlike their domestic counterparts, international mergers and acquisitions differ significantly and present numerous pitfalls for the unseasoned practitioner. For example, key issues found in international mergers and acquisitions include reconciling the tax and accounting systems of different jurisdictions, resolving differences in corporate culture and governance, dealing with cross-border communications issues and confronting some of the basic logistical difficulties of any international transaction.
One of the keys to successfully navigating through these potential pitfalls is foreign language translation. For example, in order to successfully reconcile various tax and accounting systems, one must first understand the different systems. To accomplish this, a foreign language translation is needed. The same can be said for communications and cultural differences.