Medium-sized companies seeking to grow have traditionally looked to near neighbours. Buying a local rival might seem natural and straightforward but when a business is well established in its home country, the logical next step is to look beyond its own borders.

 

Each month MOORE GLOBAL CORPORATE FINANCE M&A and transaction specialists share their latest insights and updates in this expert series that covers all global M&A issues.

This month’s guest: Kenneth Ma, director Moore Transaction Services Ltd in Hong Kong, expert in valuation and due diligence

At first sight, it might look like a paradox: in order to close an international transaction deal successfully, you need to be firmly rooted locally. “To think cross-border M&A is all about financials is a huge mistake”, says Kenneth Ma, director Moore Transaction Services Ltd in Hong Kong and expert in valuation and due diligence. “Cultural gaps definitely have a negative impact on success in transnational M&A. So it is paramount to have a deep understanding of the country and the people who are managing the company, their language and how they are operating.”