Forging cross-border mergers

Building on the Geely-Volvo case, we start the chapter by reviewing the merger and acquisition (M&A) phenomenon in a global context. We then introduce a simple framework for understanding the strategic logic behind the cross-border M&A which will determine the orientation of the integration process and the role of human resources. Attitudes to due diligence vary across countries, and we then explore this along with the planning and preparation work necessary before closing the deal. The assessment of people and cultural factors needs as much attention as the appraisal of strategic and financial factors. The next section focuses on the post-merger integration process, where the formula for success combines appropriate speed with careful attention to people processes such as communication, talent retention, and building a shared culture. Firms that make successful acquisitions also recognize that they must capture their learning to enhance their ability to execute acquisitions in the future. In this way, M&A capabilities can become an important source of competitive advantage as companies grow across borders.