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.
Utilizing our local market knowledge, we provide strategic guidance that identifies whether a merger or acquisition in a target country is likely to succeed.
Reduced set-up costs
Engaging a Global PEO when conducting a merger or acquisition can substantially reduce costs by managing the workforce of the new entity.
A Global PEO ensures that after the merger or acquisition has taken place, all applicable employment and tax laws are complied with.
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:
01. 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.
02. Merger or acquisition negotiations
03. 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.
04. Horizons engages local staff
05. Horizons acts as the ongoing Global PEO
Horizons is responsible for all payroll, benefits administration, tax withholding, and related compliance tasks.
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.
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.
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