This week saw the publication of an interesting report on merger and acquisition activity from the global accounting and business advisory firm Moore Stephens. The report tells us that a quarter of the M&A negotiations in Britain in 2016 fell through. And the number of these negotiations was down almost 20% year on year to start with.
Are our corporate leaders losing the art of the deal? Or are they applying sensible caution during uncertain times?
It’s not unusual for a business to hesitate on a large-scale transaction, particularly when it can send their level of debt soaring. And uncertainty persists over future trade relationships between Britain, Europe, the United States and the APAC region. But many are still taking the plunge. 2016 saw Bayer and Monsanto come together in a £53 billion merger, and AT&T and Time Warner made headlines last Autumn with a £63 billion deal that could reshape the telecommunications industry. How can our business leaders and the legal and financial professionals who represent them approach major transactions with confidence?
A cross border merger requires comprehensive due diligence, with information being compiled on all aspects of a business. Complex multilingual negotiations and drafting and redrafting of contracts can falter if the fine detail of a company’s assets and liabilities are unclear. That’s why the linguists assigned to translate this material need to demonstrate just as much aptitude in their field as the legal and financial experts they support. A translator working on a multinational M&A must have proven competence in legal writing style and verbal communication, thorough grounding in the terminology of their specialism and a working knowledge of the legal systems of both source and target languages. It takes talent and professionalism to work with a corporate document designed to follow one legal system and convert it into a target text suitable for another. Having this kind of talent and professionalism available allows an international law firm or financial institution to focus on their role in a negotiation, comfortable in the knowledge that communication issues will be nipped in the bud.
At a time of political and economic uncertainty, it’s natural for companies of all sizes to look for partners and services they can rely on. A corporate merger or acquisition brings unique challenges, and there are many reasons why the deal may not be completed successfully. When you work with Absolute, you can be sure that failed multilingual communication won’t be a factor. Our combination of data security, cutting edge translation technology and linguistic excellence brings clarity to pivotal legal and financial documents and gives you the platform to reach agreement. Deal or no deal? In the end that’s up to the buyer and the seller. But when you need to break down communication barriers between them, you can rely on Absolute Translations.