CROSS-BORDER MERGERS AND ACQUISITIONS: CHALLENGES OF TRANSNATIONAL MANAGEMENT AND THE UKRAINIAN WARTIME CONTEXT

Abstract

Cross-border mergers and acquisitions (M&A) represent one of the most dynamic and complex instruments of international business expansion in the 21st century. In an era defined by globalization, accelerated digital transformation, and mounting geopolitical volatility, they provide companies with opportunities not only to expand geographical presence but also to acquire technological innovations, strengthen global competitiveness, and secure access to strategic resources. According to the Institute for Mergers, Acquisitions and Alliances (IMAA), in 2021 alone more than 50,000 deals were completed worldwide, reaching a total value of USD 5.9 trillion, a record for the past two decades. Despite temporary contractions caused by the COVID-19 pandemic, armed conflicts, and the global energy crisis, the M&A market has demonstrated remarkable resilience, continuing to shape the structural evolution of the global economy. Nevertheless, international statistics highlight a paradox: while M&A is pursued as a key driver of corporate growth, nearly half of all cross-border transactions fail to achieve the desired outcomes. Empirical research suggests that up to 70% of these failures occur not during negotiation or valuation but at the post-merger integration stage, where organizational cultures, legal regimes, and managerial approaches collide. This demonstrates that financial calculations and economic forecasts, although essential, are not sufficient to guarantee success. Instead, the decisive factors lie in the sphere of transnational management, which encompasses the ability to reconcile cultural differences, harmonize legal and regulatory frameworks, align strategic objectives, and manage human capital across diverse national contexts. This paper addresses five interrelated domains of challenge in cross-border M&A: cultural distance, legal and regulatory barriers, the integration of business processes, the human factor, and strategic alignment. The analysis builds on recent academic studies, as well as case studies from global corporate practice. These insights are further contextualized through the Ukrainian wartime experience, which exemplifies the intensification of global challenges under conditions of extreme uncertainty. The Ukrainian case highlights a dual reality: on the one hand, legal instability, infrastructural destruction, and mass migration create unprecedented risks; on the other, the need for rapid reconstruction and integration into the European Union’s economic space creates extraordinary opportunities for foreign investors. In this regard, Ukraine functions as a unique testing ground where global theories of M&A and transnational management intersect with the realities of wartime resilience. By analyzing these dynamics, this paper seeks to contribute both to the academic discourse on cross-border integration and to the practical toolkit of managers navigating one of the most turbulent business environments of our time.