Seizing Strategic Opportunities with International M&A's
With the ever changing complexities of the International Mergers and Acquisitions space, the IERG Boston Chapter brought together an experienced moderated panel on the evening of Monday, February 22nd at the Silicon Valley Bank in Newton, MA.
Online, February 27, 2010 (Newswire.com) - Boston, MA- With the ever changing complexities of the International Mergers and Acquisitions space, the IERG Boston Chapter brought together an experienced moderated panel on the evening of Monday, February 22nd, 2010 at the Silicon Valley Bank in Newton, MA. Approximately seventy senior executives convened from across Massachusetts on the topic of global market conditions, especially for cross-border M & A transactions, and explore the climate for strategic opportunities with global partners. Moderated by Neil Aronson of Gennari Aronson, LLP www.galawpartners.com, the panel featured Michael Greeley - General Partner, Flybridge Capital Partners www.flybridge.com, John Piccione - Deputy General Counsel, Thermo Fisher www.thermofisher.com and Kevin Wood - President & CEO, Airwide Solutions www.airwidesolutions.com; the team addressed the question of managing the unique challenges of international integration by emphasizing the importance of truly understanding the overarching culture of the country and, more specifically, the culture of the company to be acquired.
Kevin Wood stated that "You must understand and respect the culture in order to move forward with any international business agreement. It is not enough to know the basics. You need to go beyond and understand the complexities and values of the management and employees of the business." In addition, the ability to communicate with the team and understand the information is critical. "Just because two businesspeople are speaking English doesn't mean they are communicating" said Wood. It is imperative that you consider all the points and listen to those involved to ensure a collaborative outcome.
When asked about how long any company can survive without a global reach, Piccione commented that every company needs to consider their international reach. It can be a tremendous challenge for small companies. While Thermo Fisher has focused very aggressively on expansion through channels, they also look for opportunities to acquire companies providing both a "bolt-on technology" and a new foothold in a particular country. This approach has ensured Thermo's ongoing success to maintaining strong international growth.
The panelists all agreed, that with each factor including the rise in private equity and venture capital funding, it's imperative you partner with an M&A alliance that offers advisory services and has extensive expertise with handling transactions to assist you in successfully navigating through M&A waters.
Many companies are interested in acquiring Chinese companies and vice versa, but as John Piccione cautions that you thoroughly understand expectations and the local court system. There are legal issues that can cause a snare in the transaction and you need to have a highly experienced M&A team to lead you through the process.
Michael Greeley observed that M&A as a growth strategy has many flaws. It's tough enough to scale the U.S. market let alone overseas. To identify the potential success of an M&A transaction, Greeley takes the approach of looking at a deal from the perspective of the potential acquirer by asking the question "How relevant will our client company be to the acquiring companies we work with? Greeley advises the selling and acquiring parties he works with to exercise cautious optimism and don't fall victim to "deal heat". Greeley's advice is to rein in your emotions and don't "fall in love with the other company" as it can cloud your judgment and create a false sense of security.
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International Executive Resources Group, Inc. (IERG) is a 501(c) (6) non-profit corporation, founded in 1997 in New York City as a one-of-a-kind volunteer organization of senior business executives from around the world. Its day-to-day operations are led by an ad honorem Steering Committee and Chairman. The group has over 500 members in more than 20 countries.
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