New BCG Survey-Based Report Highlights the Risks to Successful M&A in Rapidly Developing Economies -- and How to Overcome Them

January 25 - Boston Consulting Group - Companies making acquisitions in rapidly developing economies (RDEs) are twice as likely to generate superior shareholder returns -- at least initially -- as companies that make acquisitions in both developed and developing economies. But in order to succeed, companies need to be aware of four key risks before any transaction is completed, according to a new report by The Boston Consulting Group (BCG) -- "Eyes Wide Open: Managing the Risks of Acquisitions in Rapidly Developing Economies" -- which is based on a survey of executives with acquisitions experience in 30 RDEs.

These risks are a lack of information about the market and the target (cited as a significant challenge by 68 percent of executives in BCG's survey), regulatory pitfalls (63 percent), limited deal structure options (26 percent), and the complexities of dealing with the "softer" human and cultural issues in RDEs. Read More.