Services on various aspects of foreign investment and operations for
international expansion are focused on international mergers, acquisitions,
and alliances, offering an end-to-end solution package.
In the last two decades, mergers, acquisitions, and alliances have become the
preferred method of international expansion of firms from both developed and
developing countries, reshaping the world’s economic boundaries. Despite this
long-term experience, the rate of failure has been more than 40 percent.
Research shows that three out of four mergers or acquisitions fail to achieve
The rate of failure has been
associated with the fact that IMAAs are designed with business and financial fit as primary conditions,
ignoring psychological and cultural factors. Nowadays, paying attention to
cultural factors is crucial as investment trends in emerging markets and
developing countries are increasing. The wider cultural gap between these
countries and developed countries affects IMAAs’ long-term returns. Cultural
differences are an asset as well as a liability. When complementary—in relation
to the objective of an IMAA—cultural differences could be considered an asset
and when in conflict the differences will be a liability. Either way, they need
to be accounted for and planned so as to either reduce risks or increase
The IMAA solution has been designed in response to these
issues to include cultural differences, along with financial and economic
factors, in the international expansion strategic plans. This approach gives a
competitive edge to the investors and facilitates their integration into the
host country. The additional cultural component of the IMAA enables the firm to
better understand the host country’s environment, build stronger relationship
with key players, and become a responsible corporate citizen able to participate
in the socioeconomic development of the host country.
The IMAA solution is an end-to-end consulting service
Comparative country, industry,
and organization assessment and cultural compatibility
Evaluation of different layers of culture. Recommendations on integrating the
manageable layer of culture and dealing with cultural factors that are not
manageable in the lifecycle of an IMAA but have long-term effects.
Development and implementation of an international expansion strategic plan.
Guidance and training of executives on using cultural differences as a