Managing Foreign Exchange (FX) Complexities in International M&A Transactions

Exposing FX Concerns and Optimizing FX for M&A

More often, transactions involve cross-border M&A deal parties and shareholder bases that require payment in multiple currencies. The foreign exchange (FX) market is the world’s largest market yet it has no formal exchange.

Growing global transactions suggest that M&A deal parties must become increasingly aware of foreign exchange or FX conversion issues. This paper covers the issues that can arise in a deal scenario and discusses how to ensure an optimized FX conversion experience for both deal parties and shareholders. It includes the following:

• How FX Works in Cross-Border Mergers and Acquisitions Deals
• Paying Agent Inefficiencies
• Typical FX Scenario
• Deal Level and Shareholder Level Elections
• Conclusion