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Last week it was announced that Weitz Construction, a large privately-owned American construction company would be bought by OCI Construction Group, a construction firm headquartered in Egypt. OCI hopes to gain a foothold into the American high-end commercial construction market. This may have raised a few eyebrows as business professionals around the U.S. read their Wall Street Journal on Friday. Historically acquisitions are more likely to happen in reverse – with the American company purchasing an Egyptian one. But America’s current economic climate and pent up demand in specific industry sectors have made for some interesting acquisition opportunities for companies from both developing and developed countries. If your company is considering shopping for an American acquisition, here are some things to keep in mind:Who Owns the Key Assets?
Since I work primarily with technology companies, this question can easily derail an acquisition faster than any other. A company interested in buying an American company needs to hire an American attorney who specializes in Intellectual Property. This attorney needs to read through every patent, trademark and copyright agreement to make certain that when your company purchases the American company that all technology and branding is included in the purchase. One of the risks is that a patent or copyright is owned or co-owned by a current or former staff member. If the intellectual property is valuable, then clearing up any issues will be vital.
Combining Synergies
There are many reasons to acquire a company – expanding geographic reach, compatible technologies, customer base, access to government contacts, etc. I recommend making a chart to compare your company’s competitive strengths and weaknesses against the acquisition target. Are there any shared strengths? This could become an even stronger competitive advantage. Is there a strength that one company has that can compensate for a weakness in the other company? Sometimes a superior technology or a cost-effective internal process can be shared to make the post-acquisition company stronger. The area to be more careful is in shared weaknesses. Does buying this company make a weakness, such as sufficient financial resources, even weaker? This requires careful consideration.
Corporate Culture – Keep What Works
Every company has a corporate culture that has developed over time. Some corporate cultures help to promote productivity, innovation, and collaboration while others are highly dysfunctional and unproductive. It is important to talk with many employees and to spend time in the soon-to-be-acquired company to better understand what works and what does not in the company’s internal culture. As a foreign company buying an American company, it is especially important to respect American individualism. This cultural trait is present in almost every process, reward system and interaction between American employees. Another cultural trait that is normally expected in American business is fairness. If any new ways of conducting business are even perceived as unfair to employees or customers, it will be widely rejected. One way to help to bridge cultural misunderstandings and maximize the potential of the newly acquired company is to hire an American general manager who is ideally also familiar with your own home culture. Such a hybrid local executive would be extremely useful.
For more information about doing business with Americans, please click here.
( Vivian )12 Sep,2012| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 6909ZENR NACHI | 45 | 68 | 12 |
| 6809ZENR NACHI | 45 | 58 | 7 |