Legal Compliance Issues in Mergers and Acquisitions of Multinational Corporations and Their Countermeasures

This paper examines cross-border mergers and acquisitions (M&A) practices, providing in-depth analysis of legal compliance challenges and systematic solutions for enterprises navigating globalization. The study reveals that companies must address dual challenges: the "outsider disadvantage" stemming from information asymmetry and the "home country disadvantage" arising from specific national contexts. These challenges manifest in four key dimensions: politicized national security reviews, conflicting antitrust standards across jurisdictions, sensitive cross-border data flows, and persistent risks from overseas anti-corruption and trade controls. To tackle these issues, the paper proposes a comprehensive risk management framework spanning the entire transaction lifecycle. This includes cross-jurisdictional due diligence mechanisms integrating competitive intelligence and organizational identity analysis, proactive government communication to streamline approvals, data compliance integration solutions covering the entire M&A cycle, and detailed indemnity clauses with compensation mechanisms embedded in M&A agreements. These measures collectively establish a robust risk management system, offering enterprises systematic solutions and practical guidance for global compliance operations.