|
Cross-Border M&A is Becoming More Demanding, More Regulated, and More Interconnected
by Gundo Kahle, CEO
CBA Cross Borders Associates
As global markets stabilize after a period of economic uncertainty, cross-border mergers and acquisitions continue to play a central strategic role for companies seeking growth, diversification, and operational resilience. Although deal activity is recovering, the environment in which these transactions take place has become significantly more complex than just a few years ago. This article highlights the most pressing issues shaping cross-border M&A today—and what dealmakers should be preparing for in 2026.
Increasing Regulatory Requirements
The global landscape of investment regulation has changed drastically. Governments are placing greater emphasis on national security, technological sovereignty, and strategic resilience. Review mechanisms in the EU, the United Kingdom, the United States, and Asia have expanded, and review timelines are lengthening.
For dealmakers, this means:
- Early regulatory planning is essential
- Longer approval cycles can undermine deal certainty
- Strategic sectors are facing increased scrutiny
- Proactive engagement with regulatory authorities can significantly reduce friction and increase transparency throughout the transaction
Cultural Integration: An Often Underrated Challenge
Financial logic may justify the deal, but cultural alignment determines its success. Cross-border integrations frequently fail due to differences in leadership style, communication habits, and expectations around decision-making authority.
Click Here to Read Full Article
|