Fast-track your expansion with a merger or acquisition
The merger or acquisition of an established company in a foreign market can be an effective entry point for your global expansion.
As expansion experts, Horizons offers strategic guidance to simplify your merger or acquisition in a new country. Through our Global PEO, we can also facilitate your merger or acquisition, without the need to establish a local legal entity or subsidiary.
When you engage Horizons’ Global PEO, our local employment specialists recruit your workforce and become their legal Employer of Record. This allows you to focus on your core business goals, rather than employment compliance and administration.
By conducting a merger or acquisition with our Global PEO, you save valuable time and money (in many cases thousands of dollars in establishment costs). This ensures that your cross-border merger or acquisition is financially viable.
Benefits of a Global PEO for mergers and acquisitions
Partnering with Horizons’ Global PEO allows you to reduce costs when conducting a merger or acquisition in a foreign market. We also provide ongoing strategic support and help you to maintain compliance with local employment and tax regulations.
What does the merger or acquisition process look like?
When you engage Horizons’ Global PEO to support your overseas merger or acquisition, the process may proceed as follows:
1. Initial agreement
The client company and Horizons agree on the scope of the engagement. Depending on the company’s knowledge of the local market, this can include strategic market support. This would relate to suitable mergers or acquisitions with local enterprises.
2. Merger or acquisition negotiations
Your business engages with the company or companies that show potential for a merger or acquisition. Horizons can offer expertise during these consultations. This ensures that subsequent mergers or acquisitions are optimized to take into account the future role of the Global PEO.
3. The merger or acquisition is finalized
Your merger with, or acquisition of a local company is finalized in a legal agreement or set of agreements. We offer professional guidance to ensure this process is compliant with all local regulations.
4. Horizons engages local staff
The full scope of Horizons’ role is finalized. This can mean engaging Horizons to carry out ongoing recruitment, visa assistance, and other related activities, as well as the standard responsibilities of a Global PEO.
5. Horizons acts as the ongoing Global PEO
Horizons is responsible for all payroll, benefits administration, tax withholding, and related compliance tasks.
Frequently asked questions
It can sometimes make sense to start from scratch in your country of expansion. In other cases, it's more feasible to partner with a local company via a merger or acquisition. By taking this route, you're able to leverage existing supply chains and networks, as well as the local knowledge of a company already successful in that country.
Global PEOs can provide essential strategic advice before a merger or acquisition occurs. They can also employ the local workforce of a newly merged or acquired entity. However, for any legal transactions, it is recommended you seek the advice of a law firm that specializes in international mergers and acquisitions.
Yes. Sometimes a business reaches a point where it makes sense to have a local subsidiary in the target country. If this is the case, you can switch from a Global PEO to a local entity. Horizons will support you through this process.
Yes. Horizons can carry out market research and competitor analysis to help you identify potential candidates for a merger or an acquisition.
Additionally, Horizons can help you with the due diligence process. We can explain the financial indicators that need to be considered when evaluating a potential merger or acquisition.
A merger or acquisition involves the union of two firms that may have different approaches to wages and benefits. As international HR experts, Horizons will advise you on the best approach to wages and benefits for the newly merged or acquired entity. For example, after analyzing the benefits programs of both companies, Horizons can advise on whether or not the two benefits programs can be merged.
As a merger or acquisition may involve the re-assignment of employees, or redundancy of positions, it is important that employee well-being is taken into consideration. Any employees being transitioned into the new entity should be informed about:
- Any changes to the payroll system
- Whether previous benefits policies will be carried across
- The details of the new company, including its history and culture
- How employees will be evaluated under a new performance management system