Specifics of project management in cross-border mergers and acquisitions

The area of existence of reliably systemic problems and systemic problems is the area of a systemic technique that allows you to deploy such a representation of an object in models and ontologies that it helps to explain different objective representations and depicts them in the form of their projections.To eliminating the direct consequences of ineffective management it may be accompanied by a refusal of disadvantageous contracts, an exchange of previously issued bonds requiring large interest payments for shares.This rewiev on this theme shows that the Cross-Atlantic corporate mergers and acquisitions have become the hallmark of rapid economic change, particularly when it comes to the consolidation-based competition going on within Western industrialized countries. Companies seeking to establish themselves in mature markets cannot afford to engage in years of competition as a means of edging out their competitors. Instead, the acquisition of a national player has now become the method of choice for entering a market. Given the broadening scope of technological options and ever-shorter product lifecycles, acquisitions increasingly secure products and technologies that no single company would be able to develop on its own. These are the main factors driving Cross-Atlantic M&A activity.This makes Cross-Atlantic consolidation a must for companies that want to keep pace with the movement toward globalization in the decades ahead and to compete with newly emerging giants from the Far East.Theme 3:Cross-Atlantic Mergers and Acquisitions: Opportunities and Pitfalls of Project managementThe literature rewiev of the articles of this theme comes down to one statement that the structures of companies engaging in strategic acquisitions vary widely on the two sides of the Atlantic. German companies aiming to make the transatlantic leap generally already have a broad international presence in the European market. For them, entering the U.S. means tapping into the world’s biggest single homogenous market. For budding transatlantic dealmakers from the U.S., on the other hand, the acquisition of a European company is aimed not only at achieving a leading position within the German market but also at establishing a broad presence in Western and Eastern Europe and developing a broad-based, multicultural management system to manage the diversity of markets and business entities there. New global players are rapidly emerging in the “BRIC” countries.This review on this theme proves that the growing M&A activity was mainly due to a significant increase in the number of Cross-Atlantic deals whereby US firms were most active as acquirers. The opposite is true for the market for corporate control in the 2000s: the surge can be largely explained by the increase in intra-European transactions while the number of Cross-Atlantic M&As remained relatively stable on average 2,500 per annum. However, this appeal is muted somewhat by the Cross-Atlantic M&A success rate, a mere 30% -50% on the whole, based on the relative development of share prices following acquisitions. Cross-Atlantic M&A deals fare even worse on average. Large-scale Cross-Atlantic M&A projects have a particularly low success rate, destroying vast assets within national economies in their wake. The commonly expressed optimism that Germans and Americans are particularly close because of the special relationship that evolved from the post-war era’s Marshall Plan, reconstruction and export ties - and that corporate mergers should therefore be easier - flies in the face of reality. According to analyses in several articles within this book, companies' overestimation of their own capabilities and underestimation of the challenges involved. Large Cross-Atlantic M&A deals - and particularly in transatlantic business, this is generally the case - are often driven by management egos. However, once ego takes over, barriers go undetected, general due diligence takes a back seat and the projects end in disaster. The American way of M&A is characterized by pragmatism and confidence in general management abilities. However, studies show that the expertise and skills that are critical for M&A are quite different from those needed to ensure continuity in ongoing operations.Conclusion To sum it up, in order to generate long-term added value for the stakeholders through M&A transactions you need to consider far more than just a figures-focused due diligence process. Precisely in the ease of Cross-Atlantic deals there are any number of soft factors to be taken into account, that can at the end of the day actual decide whether the transaction is successful or not. A precise knowledge of the target groups in the countries concerned and their communications needs, detailed scenario planning, and disciplined implementation of the resulting communications strategy both inside the company and to the outside world can appreciably enhance general acceptance of the deal and its consequences, thereby significantly reducing execution risk.