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Post-Acquisition Integration for a China-Based Multinational

Abstract

A Chinese company that recently acquired a business unit from a more established international rival engaged us to assist with cross-cultural integration challenges at the executive level.

The Challenge

The company's leadership faced a series of common post-merger and acquisition (M&A) issues, but these issues were complicated by virtue of the cross-cultural context in which they occurred. Additional issues that are particular to cross-border M&A in China also emerged, requiring knowledge of, and experience with, China’s unique operating environment.

How We Helped

We assisted the company in developing an education program for its board of directors. The program included topics such as:

  • Corporate governance in the United States and China
  • Differences in financial reporting standards and accounting principles
  • The impact of culture on the conduct of business and communicating ethical values.

The result was a group of directors who are deeply familiar with the company's strategy and business model and sensitive to the particular opportunities and challenges it faces as a newly multicultural (not merely multinational) entity.

Solution

We were able to leverage a multidisciplinary and highly integrated team of professionals familiar with corporate cultures and business environments in both the United States and China. With extensive experience in all aspects of corporate governance, post-merger integration and cross-cultural issues, we were able to bring to the table a thorough understanding of the potential problems. This not only allowed Deloitte to deliver comprehensive solutions but it also allowed us to do so in a culturally sensitive and highly effective manner.

As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see  www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  

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