The business world is becoming increasingly complex. Today’s international companies must navigate an abundance of standards, national legislation and compliance obligations. This is all taking place in an increasingly uncertain geopolitical context. For any company contemplating a merger or acquisition beyond its borders, 2025 demands heightened vigilance. The experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, explain the main legal challenges you need to address.
How can you anticipate all the legal risks involved in acquiring a company abroad? In 2025, harmonisation is still far from the norm, with each country imposing its own specific requirements. Factors such as tax law, accounting standards, sector-specific regulations, company law, transparency requirements and governance obligations all need to be taken into account on a case-by-case basis.
Due diligence and compliance
Due diligence is an essential part of any acquisition. It involves taking stock of the company at the time of acquisition. Particular care must be given to legal due diligence in the case of an international target. This involves scrutinising contracts, contingent liabilities, tax and social security obligations, current litigation, and environmental liability under local law. The same approach should be taken with regard to compliance. Failure to respect the rules, whether relating to data protection, anti-corruption measures or commercial practices, can result in financial penalties and reputational damage. All these factors must be considered in light of both international and local legislation.
Effective guidance is key
In the absence of harmonised legal standards between countries, it is crucial to speak the same language. To achieve this, it is vital to surround yourself with advisers who are well-established locally. Large companies often have robust M&A teams. These teams are responsible for identifying potential acquisitions and ensuring their feasibility. However, their presence is no substitute for specialist legal advice. Lawyers operating from the country where the target company is based are essential for the smooth running of projects. They will particularly enable you to anticipate legislative changes that could affect the transaction’s viability.
A comprehensive approach
Another major challenge is to avoid overlooking the specific characteristics of the country in which the acquisition is taking place. Cultural specifics impact corporate culture and management. In order to ensure the success of an operation in 2025, it is necessary to adopt a comprehensive strategy that considers not only legal compliance, but also local law, competition law, taxation and cultural aspects. This integrated approach ensures the transaction remains coherent and aligned with the objectives of the acquiring entity.
Our experts at your service
Combining local and international expertise maximises the chances of a transaction’s success. At AURIS Finance, our experts specialise by sector. They will support you throughout the sale, acquisition and financing process.
