The post-closing period of an outbound acquisition was
mentioned throughout IFLR’s
India Outbound Investment Forum. Here’s how
practitioners recommend handling integration.
Integrating a foreign company is difficult regardless of the
jurisdiction. Jai Pathak, partner at Gibson Dunn said
implementing overseas acquisitions was the easy part. "The real
challenge comes in the aftermath: the post-closing issues,
integration issues, synergistic issues and local compliance
issues," he said.
To ease the transition, Wilton Henriques, executive vice
president and global head of legal, governance and risk at
Crompton Greaves, recommended that in-house counsel consider.
"Perhaps too much time is spent on legal, tax and financial due
diligence, and too little time is spent determining how to
extract value from the target," he said. "The moment you shift
your eyesight to value extraction, this could overshadow other
Rather than focusing on due diligence, Henriques advocated a
more commercial approach. He suggested looking at margins, cash
flows and where and how the target’s portfolio
will deliver value. "Look where it is possible to enhance
productivity through labour and plant efficiencies," he
But that does not mean that due diligence is unimportant.
Pathak believed due diligence was absolutely critical. But he
warned there were challenges faced when carrying it out. "The
rest of acquisition issues flow from due diligence," said.
Focusing on labour issues, Vijaya Sampath, ombudsman of
Indian conglomerate Bharti Group and senior partner at
Lakshmikumaran & Sridharan, said it was about managing
differences. She said that it was important to define
objectives clearly before a company goes into a deal, and at
that time it will understand if it needs to send anyone after
the acquisition. She emphasised that it is very important to
give a clear message to the existing management on future
Sampath also advocated adapting to local conditions. She
recommended having an overall framework for compliance,
processes and systems, but to be clear that it is necessary to
adapt to each country depending on local laws and
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