I.            Political concerns:  Political situation has major role in cross border merger and acquisitions, particularly for industries which are politically sensitive such as defense, security etc.

      II.            Cultural changes:  Cultural factors exert more threat to the success of cross border merger and acquisitions.  From past records, it can be established that huge mergers that have failed because of the cultural issues they have had.

    III.            Legal considerations:  Firms interested to mergers cannot ignore the challenge of various legal and regulatory issues.  Various laws in relation to security, corporate and competition law are bound to diverge from each other.

    IV.            Tax and accounting consideration:  Tax issues are critical particularly when it comes to structuring the transactions.  The proportion of debt and equity in the transaction involved would influence the outlay of tax hence a clear understanding of the same becomes important. 

      V.            Due diligence:  Due diligence is significant element of the M&A process.  Apart from the legal, political and regulatory issues, there are also infrastructure, currency and other local risks which need thorough appraisal.