CLIH Cross border Issues

www.canadianlawyermag.com/inhouse 25 "Don't think, as you might have done in the past, that you can get a deal done with just one person or a skinny team with tight budgets." Karrin Powys-Lybbe, Torys LLP says Zaman. The negotiating style of parties in different jurisdictions can vary, such that some may be more abrasive or blunt in negotiations, so understanding differing types is essential, Zaman says. To mitigate risk in cross-border dealmaking, it is also essential to understand the political and regulatory environment. "When you don't have the home-court advantage, you have to have to be very careful to look at how these processes could derail a transaction," says Zaman. "If you're doing a transaction in the US, you have to go with US customs. You can't just impose your own jurisdictional norms." Another critical skill in cross-border dealmaking is to strike the right balance between exercising caution and overanalyzing, which can lead to delays. Zaman recommends having the right team members involved in the deal from the outset to bring different perspec- tives to the table and ensure all bases are covered without unnecessary delays. Many people are currently suffering from burnout caused by increased workload and challenges in their personal lives amid the pandemic, thus creating further difficulties for cross-border dealmakers. Powys-Lybbe advises in-house counsel to avoid skimping on the team when planning for M&A. "Don't think, as you might have done in the past, that you can get a deal done with just one person or a skinny team with tight budgets," she says. "There's more pressure on individuals, so my advice would be to think strategically about where you need support and manage expecta- tions internally." In times of remote dealmaking, market participants who already have a relationship have a distinct advantage. "If you're competing in an auction and you're already known to the target, you're going to have a leg-up over a company that's coming from a cold start," says Powys-Lybbe. "When people are looking to get deals done, they are more likely to go back to someone they have a relationship with." Careful examina- tion of the target company's financial information can help prevent unpleasant surprises after the deal closes. Redinger anticipates an ongoing strong market for cross-border M&A in 2022 as companies continue to look across the border as a strategy for growth and strategic economic recovery. "I think it's going to be a very robust year because interest rates are still low, and there's a lot of pent-up demand because people have been sitting on the sidelines for the last few years," he says.

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