What should be in your toolkit for a successful cross-border closing? Our panel at Doing Business Globally in Minneapolis discussed key steps to take for a smooth closing. Panelists included Baker & McKenzie partners Duffy Lorenz and Helen Mantel, as well as leading senior in-house counsel.
- Transfer local businesses efficiently – Prepare sign and close local documents that are based on the master purchase agreement.
- Make borders seamless – Identify, for example, where local closings are actually required, as opposed to desirable.
- Make due diligence a value-add — Identify the jurisdictions where publicly available information provides material intelligence beyond what would be publicly available in the US.
- Be ready for Day 1 – Work with business units to ensure they are thinking of all potential transition issues, such as intellectual property and board seats.
- Use deferred closings to your advantage – Identify which jurisdictions may pose a timing risk.
- Manage cash and working capital – Reassure local management that they will have adequate working capital.
- Keep you global workforce happy – This is one of the most important areas to companies, and defines how they will judge the success of the deal. Therefore, there is heightened attention to the internal communications about the transaction, and it’s a balance between keeping the workforce well informed and complying with legal requirements in various jurisdictions.