Cross-Border M&A: What Non-US Investors Should Know

Cross-Border M&A: What Non-US Investors Should Know

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Overview


In contemplating a potential acquisition in the United States, there are multiple considerations that require significant analysis to achieve the strategic goals of such acquisition.

It is paramount to consider the applicable US political and regulatory implications before acquiring businesses or assets. Additionally, federal, state and local laws, especially in sensitive industries or in industries with foreign government involvement, need to be considered. We also recommend planning how to navigate securities, antitrust regulations and potential review by the Committee on Foreign Investment in the United States (CFIUS). Mergers and acquisitions (M&A) strategy is unique and often different than in the home jurisdiction of non-US acquirors and, therefore, we believe it is important to become familiar with strategies utilized in US M&A transactions. For example, acquirors need to understand deal protections, pricing protections and defensive strategies available to US targets.

Throughout this guide, we discuss important considerations to consummate a successful acquisition in the US and provide summaries of the more significant subjects to be considered when purchasing businesses or assets in the US.