Why you need a linguistic partner?
Doing business is no kids’ game. Therefore, you need to have the right resources to get you and your company through the challenges of growth and expansion.
Mergers and acquisitions come with a set of challenges, however, there is an additional difficulty when you decide to expand your vision and strategy towards a cross-border acquisition and posterior merger where language, culture and different country regulations come into play.
A cross-border M&A’ is a preferred strategy used by firms to expand due, not only the benefits of the insights and the new market possibilities provided by the method, but also on its impact on the economy of scale. Increasing access to capital, lowering cost as a result of higher volume and generating better bargaining power with distributors.
Variables in the M&A process
Target Market situation
The different country regulations and their socio-political and economic situations are very important variables to take into account, along with the language and cultural barriers. Fully understanding them and how they affect not only a cross border acquisition, but the posterior PMI (post-merger integration), gives a better perspective on the benefits and the creativity required, in some cases, for management and problem solving. In some situations, there will be the need for some innovation and changes in the structure of the company.
Language and cultural barriers
Language and culture varies from region to region. What we perceive as normal in our own culture might be very different or difficult to understand for somebody else. As an example, the English language is one of the most spoken languages in the world. However, there are idioms, words and concepts that might not be of common knowledge nor easy to translate.
According to the Education First Proficiency Index, only fifteen countries carry a very high proficiency level. Thirteen countries have a proficiency level high enough to communicate and perform their professional tasks with efficiency and without compromising productivity while also being able to report and comply to directives and to the process of M&A.
The report mentioned, “It is no longer enough that companies compete in the global marketplace. They are increasingly expected to behave ethically, actively engage their customers, and weed out bad actors before they can tarnish the brand,” and that comes along with good communication and understanding of not only language, but also culture and the reason to have a partner to assess in the situation that has deeper knowledge.
This is an introduction to the main protagonist of the M&A process, related to the agreements, contracts and correspondence. Having secure data handling and professional and quality procedures will lower the risk of failures and fraud. That is why relying on a good “bridge” or advisor in the M&A process will help your company, and the transition, flow professionally without having the struggles, the extra work and frustration of such a delicate process.
At Stillman Translations, we offer a multicultural solution with our translation service, respecting ISO 9001 and ISO 17100 guidelines and ensuring secure, quality procedures. Our goal is to be your friend and advisor in the process, bringing the professionalism and reliability needed to carry the M&A successfully so your company can achieve international diversification.