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9780470884744

Due Diligence for Global Deal Making : The Definitive Guide to Cross-Border Mergers and Acquisitions, Joint Ventures, Financings, and Strategic Alliances

by
  • ISBN13:

    9780470884744

  • ISBN10:

    0470884746

  • Format: eBook
  • Copyright: 2010-05-01
  • Publisher: Bloomberg Press
  • Purchase Benefits
List Price: $75.00
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Summary

Companies of all sizes have been initiating international transactions--mergers and acquisitions, joint ventures, strategic alliances, and private placements--in record numbers. Targeted due diligence is crucial to effectively research, value, and complete these complex deals. With an evolving climate of uncertainty and new, unpredictable threats to business, it is more essential than ever before.Due Diligence for Global Deal Making is an invaluable guidebook for companies trying to capitalize on the opportunities in both developed and emerging cross-border markets. All too often global transactions fail to meet the parties' expectations, and the leading culprit is inadequate due diligence. Especially when the target partner lacks a financial performance track record and significant assets, expanding businesses must answer difficult questions, such as: Why (if at all) do this deal? What are the rules going in, and what happens if things go wrong? Where are the tax, legal, financial, and operational traps, and what are the opportunities? This book provides what's needed to avoid devastating mistakes and to master the steps that ensure success: Expert analysis, insights, and strategies from experienced practitioners and leading authorities in cross-border matters In-depth coverage of critical topics decision makers need to understand in order to succeed in cross-border transactions--from corporate planning to operational, financial, legal, tax, accounting, and people/organizational considerations Best practices of corporate investors and professional advisers in conducting critical due diligenceNoted experts discuss critical topics corporate executives--and all those involved with their company's legal, operational, accounting, and tax matters--need to know to successfully complete complex global transactions today.

Table of Contents

About the Contributors
Due Diligence in the Global Economy
What Is Due Diligence?
Types of Due Diligence
Who Is Involved in Due Diligence?
What Constitutes Legal Due Diligence?
What Constitutes Financial Due Diligence?
What Constitutes Operational Due Diligence?
Integrating Due Diligence Efforts
Strategic Due Diligence
Strategy Precedes Due Diligence
Reviewing Your Strategy
Costs
Customers
Competitors
Capabilities
Achieving Value
Factoring in Cross-Border Complexities
Identifying Your Strategic Rationale
Active Investing
Scale
Adjacency
Scope
Transformation
Undertaking Thorough Due Diligence
Market Definition
Industry Dynamics and Trends
Competitor Market Map
Competitor Dynamics
Competitor Benchmarking
Customer Analysis, Input Costs, and Price Elasticity
Growth Opportunities
Cross-Border Complications
Key Factors in Evaluating Strategic Rationales
Due Diligence for Scale-Driven Transactions
Due Diligence for Adjacency-Driven Transactions
Due Diligence for Scope-Driven Transactions
Due Diligence for Transformation-Driven Transactions
Assessing Your Findings
Checklist: Cross-Border Strategic Due Diligence
Operational Due Diligence
Operational Due Diligence in the Cross-Border Context
Designing Due Diligence from a Strategic Perspective
Validating and Integrating Other Due Diligence Efforts
Serving as the Foundation for the Integration Plan
Serving in Support of Deal Strategy and Pricing
What Should Operational Due Diligence Cover?
Mapping the Value-Creation Process
Products and Services, Market Positioning and Brand, Sales and Distribution, and Customers
Manufacturing or Other Production of Goods/Services
Procurement of Supplies and Supply-Chain Management: Possible Related Reconfiguration of Distribution Processes, External Infrastructure Requirements, and System Cash Needs
Systems and Know-How Support of the Value-Creation Process
People, Training, and Corporate Culture
What Can Go Wrong
Deals That Got It Right
Checklist: Cross-Border Operational Due Diligence
Financial and Accounting Due Diligence
Addressing All Aspects--Whether Large or Small
Financial Due Diligence Procedures
How to Verify the Numbers
Inbound Transactions
Outbound Transactions in Developed Countries
Outbound Transactions in Emerging Markets
Accounting Due Diligence Procedures
Integrity and Qualifications of Company Personnel, Their Practices, and Ethical Standards
Relationship with Independent Certified Public Accountants
Considerations in Evaluating Key Accounting Issues
Statutory, Regulatory, and Legal Requirements
Industry Accepted and Generally Accepted Accounting Principles
Industry Practices
Income Tax Laws and Regulations
Data Processing Systems
Political Environment in the Target's Country Checklist: Cross-Border Financial and Accounting Due Diligence
Legal Due Diligence
"Legalese" across Borders
The Purpose of Legal Due Diligence: Insurance against the Unknown
A Good Deal Is Vastly Better Than a Good Lawsuit
Defensive Due Diligence in U.S. Public Securities Issuance
Transactions: Proving Enough Was Done
Forces Working to Limit Due Diligence: Quick Decision Makers versus Slow Scriveners
Avoiding Ruffled Feathers and Missed Opportunities
Fitting Due Diligence into the Structure and Timing of the Deal: Sooner Is Better
Organizing and Executing Legal Due Diligence: The Buck Stops at the Top
Assigning Qualified Personnel
Organizing and Delegating Duties
Ensuring a Searching Investigation
Communicating Results Effectively
Certain Key Risk Exposure Areas in Legal Due Diligence
Environmental
Antitrust
Intellectual Property
National Security Implications
Litigation
Security Interests of Creditors
Terminating Employment and Marketing Relationships
without Liability
The Preferred Result of Legal Due Diligence: No News Is Good News
Checklist: Cross-Border Legal Due Diligence
Tax Due Diligence
Compliance versus Planning
Due Diligence Coordination
Local, National, and International Perspective
A Word about Joint Ventures
Taxable Purchase of Assets
Understanding the Target's Operations and Structure
International Federal Tax Compliance Due Diligence
Foreign Subsidiary Shares as Part of the Target's Assets
Transfer Pricing
Nonfederal Tax Due Diligence in an Asset Acquisition
Asset Acquisition Planning Opportunities: Overview
Taxable Share Purchases
Tax Compliance
Transactions and Tax Reserves
Consolidated Returns, Attributes, and Accounting Methods
Withholding Taxes
Employee Benefits
Foreign Tax Credits and Exemptions
Tax Attributes
Structuring the Share Acquisition
Tax-Free Exchanges
Checklist: Cross-Border Tax Due Diligence
People and Organizational Due Diligence
General Considerations
Strategic Objectives
Type of Deal
Composition of the Organizational Due Diligence Team
Impact of Organizational Experience and Cultural Milieu
Negotiations
Key Components of Organizational Due Diligence
Organizational Performance Measures
Cultural Factors
Mission, Vision, and Values
Communications Patterns and Processes
People Issues
Overall Organizational Structure
Functional Areas
Checklist: Cross-Border Organizational Due Diligence Process
Due Diligence Investigative Technology and Know-How
How Investors Use Private Investigators
How Investigative Technology Can Help
The International Public Record
The Hometown Newspaper
The Backgrounds of Key Executives
Prime Questions Investigators Must Explore
Resolution through Follow-up Investigation
The Business Practices of the Target Company
Regulatory Issues
Concerns about Intellectual Property
Business Disputes
Increased Pressure on Due Diligence Professionals
Checklist: Due Diligence Investigative Technology and Know-How
Appendix: Cross-Border Due Diligence in an Age of International Terrorism
Index
Table of Contents provided by Publisher. All Rights Reserved.

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