As we have studied over the past 6 weeks purely domestic M&A brings many challenges. Cross border M&A magnifies these challenges by introducing additional hurdles including communication, cultural and political issues. Just like two states fighting to retain the corporate headquarters after the merger of a firm countries also wager for the headquarters. Integration of operations, in particular back office, administrative and accounting issues tend to drive a company's ability to successfully merge.
How will the corporate cultures of two companies be important determinants of the success or failure of a Merger or Acquisition?