Listen "Ep 26: Cross-Border Acquisitions: Worth the Effort or a Risk Too Far?"
Episode Synopsis
In this episode of The 7 Minute Takeover, Elizabeth MacRae and Eamonn Gamble explore the realities of buying businesses across borders—specifically, Canadian buyers entering the U.S. market and vice versa. They unpack key challenges around financing, deal credibility, and return potential, while inviting community input on future cross-border topics.Eamonn highlights common buyer hesitations, including access to financing, lender limitations, and ensuring credible offers. Elizabeth stresses that success often depends on being a strong strategic buyer with a clear rationale for going cross-border—especially in competitive environments.They also examine the lender landscape: most banks require local presence, and Canadian buyers face hurdles like ineligibility for SBA loans without a U.S. partner. While multinational banks can help, that’s typically limited to larger corporate deals.Despite the complexity, both agree cross-border acquisitions can deliver strong returns if managed strategically. The key lies in understanding the risks—like local market unfamiliarity and FX exposure—and structuring deals to mitigate them.
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