I contributed a column to the website of Borderless Sdn. Bhd., a company that handles cross-border M&A in Malaysia.
Seven Pitfalls of Cross-Border M&A — A Practical Guide to Successful Expansion into Malaysia
Key points of the article
Based on his many years of experience in cross-border M&A projects in the ASEAN region, particularly Malaysia, he explains seven key issues that he often faces in practice.
- Current situation analysis based on statistical data – According to a JETRO survey, there are over 1,400 Japanese companies operating in Malaysia. However, data also shows that the success rate of overseas M&A is only 37%.
- Lessons learned from real-life examples – Roche x Chugai Pharmaceutical's 30-year success story, Nidec's impairment loss due to cultural clash, etc.
- Includes practical checklists and FAQs – and includes ready-to-use practical tools
Why Cross-Border M&A?
Malaysia is a multi-ethnic nation with common law jurisdiction and is a key economic hub in the ASEAN region. While it is an attractive market for Japanese companies, differences in culture, legal system, and language can often lead to unexpected problems.
In particular, oversights during the due diligence stage and the loss of talent during PMI (post-merger integration) often lead to losses of hundreds of millions of yen.
In this column, I will summarize practical approaches to avoiding these "pitfalls" in advance, from the perspective of an M&A intermediary and business consultant.
Recommended for:
- Business owners considering expanding into Malaysia or conducting M&A
- Practitioners involved in cross-border projects in the ASEAN region
- Those who want to know about risk management for overseas M&A
We hope you will read it and find it useful in developing your business.
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