Challenges in Cross-Border Investments

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August 22, 2024

by an investor in Accra, Ghana

For those who have experience in cross-border acquisitions, particularly between the US and other regions, what are the biggest challenges you’ve faced?

Whether it's regulatory hurdles, cultural differences, or market entry strategies, I’d love to hear how you’ve navigated these complexities.

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Reply by a professional
from University of Michigan in Detroit, MI, USA
Hi ^redacted‌, my law firm, Groundswell Advisors, LLP, tackles cross border transactions with some frequency, so I can comment from a legal perspective. If you're looking to do that type of deal, just be aware that you'll need to hire two law firms. One in the US and one in the purchasing jurisdiction (to act as local counsel). In almost all cross border transactions in the ETA space, the most complicate legal issues relate to tax. So make sure you partner with a law firm who has a tax attorney on staff with experience dealing with cross border M&A and international tax issues in general. Happy to chat further, if I can be of any help. DM me here or reach out directly at redacted
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I get this question often. The challenge we have is that for smaller transaction sizes most banks and non-bank lenders dealing in that space do not understand international law or have any desire to do so. Because of that getting financing for business acquisitions under $20 million if the business is international can be very challenging. I hope this helps.
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