Cross-Border Mergers And Acquisitions: A Comprehensive Review Of Success Factors

Abstract

Cross-border mergers and acquisitions (M&As) have become a prominent strategy for firms seeking growth opportunities in international markets. However, the success rate of these endeavors varies widely, with many failing to achieve their intended objectives. This paper provides a comprehensive review of the success factors influencing cross-border M&As, drawing upon existing literature and empirical evidence. The analysis encompasses various stages of the M&A process, including pre-merger planning, negotiation, post-merger integration, and long-term performance evaluation. Key success factors identified include cultural compatibility, strategic fit, due diligence, effective communication, leadership, and post-merger integration capabilities. Furthermore, external factors such as regulatory environments, economic conditions, and geopolitical risks are also examined for their impact on M&A outcomes.