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As Asian bidders make their way onto the global stage, the challenges and perils of target selection, pricing, due diligence, integration, understanding cultural differences, and workforce-related risks await them. These companies must be mindful of a host of potential pitfalls, from understanding local labor laws and legislative requirements, to assessing the background, reputation and integrity of the target business to intangible assets such as patents, trademarks, brand names, and human capital.

Understanding national and organizational cultural differences is also vital to ensuring a positive deal outcome. A solid appreciation of cultural differences can make the identification of potential operational synergies much easier, ultimately impacting the success of a deal. Another key area of concern is HR-related financial risk, including pension/benefit liabilities, severance costs, and change-in-control employment contracts. Employee communication and change management are also important issues to consider. Indeed, Asian cross-border M&A bidders clearly have their work cut out.

With this in mind, Mercer, a leading global provider of consulting, outsourcing and investment services, and Kroll, the world's leading risk consultancy, commissioned mergermarket to produce Asia on the Buyside: The Key to Success. Between March and April 2010, 155 senior executives with Asia-based corporations and private equity firms that have undertaken a cross-border acquisition over the past three years were asked about their views on the risk management and human capital issues that impacted the success of their purchase. The report includes survey findings and insights from Mercer and Kroll consultants that readers will find both interesting and useful as they consider their next transaction.