Any experience in agreeing to FX/Spot Rate for Valuation in transaction?

by a searcher from Mount Royal College

3 years ago

In a cross border transaction - does any one have any experience/ideas related to agreeing to an FX rate on a certain date for the exchanged rate valuation for a acquisition?
- current local (investors) currency is favorable compared to the foreign currency of the acquiree company while we are just entering the process. 
Outside of hedging on our own, any one had experience tying foreign currency valuation to an FX rate?

Thank you!

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4 comments

searcher from INSEAD

I do cross border m&a, happy to share some practices

3 years ago | like reply | 0 likes

professional from Bentley University

Thank you Luke; I will be very happy to help. Knowing the Country or local currency will be useful. Most Latin American countries have USD Indexes and some futures.

3 years ago | like reply | 0 likes

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