Capital build-up: Cross border merger and acquisitions support in capital accumulation on a long term basis.  In order to expand their businesses it not only undertakes investment in plants, buildings and equipment but also in the incorporeal assets such as the technical know-how, skills rather than just the physical part of the capital.

Employment creation:  It is observed that the M&A’s that are undertaken to drive restructuring may lead to downscaling but would lead to employment gains in the long term.  The downsizing is sometimes essential for the continued existence of the operations.  When in a long run the businesses expands and becomes successful, it would create new employment opportunities.

Technology handover:  When firms across countries join together, it sustains positive effects of transfer of technology, sharing of best management skills and practices and investment in intangible assets of the host country.  This results in innovations and has an influence on the operations of the company. 

•   It is analyzed that cross border merger and acquisitions are quite similar to domestic M&A’s.  But because the former are huge and international in nature they pose certain unique challenges in terms of different economic, legal and cultural structures.   There could be huge differences in terms of customer’s choices, business practices, and the culture which could pose as a huge threat of companies to fulfill their strategic objectives.  There are many issues and challenges related to cross border merger and acquisitions which may be stated hereunder:- 
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