EUROPEAN CROSS-BORDER ACQUISITION - HOW WAS IT FOR YOU

Cross-border acquisition activity within Europe has increased four fold over the last 5 years yet continues to be a high risk form of corporate expansion, since one in two purchases end in 'failure'. This article discusses the types of cross-border acquisitions British companies are making, the acquisition processes they are adopting, and the major areas in which unforeseen difficulties are experienced. It is based upon data collected from 70 UK companies, each of which have made a recent acquisition in Continental Europe. The key lesson that emerges for future cross-border acquirers is the need for relatively specialized integration skills: typically, post-acquisition difficulties are likely to be compounded by cultural differences and the need to facilitate the transition from family to professional management.