Weighing the pros and cons of a global acquisition
Will the value of my company be enhanced by a global acquisition or a joint venture? Our global business consultants are often asked that question. They base their answers on an international due diligence process that takes a holistic approach and incorporates far more than financial data.
When conducting financial due diligence, our global services team considers the local impact; evaluates the target’s operations; looks at the quality of its earnings and hidden or undisclosed liabilities; and investigates the desirability of the target’s clients.
Oftentimes the international due diligence process uncovers situations that lead to a decrease in the cost of the transaction and sometimes the situations are serious enough to be deal breakers.
Joint ventures can mitigate global business risk
Joint ventures are very common when making global investments because of the flexibility they offer and the way in which they allow companies that are going global to mitigate some of their risk.
When your organization is considering whether to acquire a company outside of the United States or enter into a joint venture, a number of key questions need to be considered. Is going it alone the right way or are you better off finding a partner with local market knowledge? If so, how do you identify the partner? Are you comfortable that the partner has the capabilities, business ethics, and operating style that you desire? What do you do once you have a joint venture and you need to look at post-transaction integration, making sure that you get synergies?
Making your global investment work
Our global services team has helped numerous clients to successful outcomes when acquiring a new business or entering into a joint venture.
The engineers on our global business solutions team are able to go into a company, whether it be a supplier or a target foreign acquisition and look at the quality systems that are in place and the manufacturing protocols that are used. You can depend on them to ensure that the target operation meets international standards for productivity and quality and will produce products that meet the highest standards. Our global business advisors can help you avoid quality issues and the problems they can cause for you in terms of client trust and costly liability litigation.