www.acquisition-international.com • May 2025 Featuring:
No information contained on or in this website constitutes investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Neither AI nor any of its associated entities are authorised to give financial advice of any nature nor are they regulated by the Financial Services Authority. Prior to making any investment, AI recommends that any prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. AI Global Media, Ltd. (AI) takes reasonable measures to ensure the quality of the information on this web site. However, AI will not assume any legal liability or responsibility for the accuracy, correctness or completeness of any information that is available through this web site. If errors are brought to our attention, we will try to correct them. The information available through the website and our partner publications is for your general information and use and is not intended to address any particular finance or investment requirements. In particular, the information does not constitute any form of advice or recommendation by us or any of our partner publications and is not intended to be relied upon by users in making or refraining from making any investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility. Editor’s Letter Welcome to the May 2025 issue of Acquisition International magazine, where we bring you the latest news, features, and success stories from the corporate landscape all around the world. As we journey through early 2025, we’re proud to continue to stop to applaud and celebrate our winners and all of their successes. With news pieces and interesting insights to share with you, we at Acquisition International are pleased to welcome our readers back for more each month. We wish you a truly excellent and exciting May ahead and look forward to seeing you again soon! Sofi Parry, Senior Editor
Contents 4 News - Magna Legal Services Expands National Footprint with Merger of Basye Santiago Reporting - CAPREIT Announces Acquisition of Two Apartment Communities in Waldorf, Md. 6 Broadstone Risks: Creating Calm in Complexity 7 DigitalOwl: Redefining Medical Record Reviews with AI for Legal and Insurance 8 Creating Collaborative Business Outcomes: Why Tech and Finance Leaders Should Unite During the M&A Process 10 Tax Season Prep: The Complexities of International Tax Compliance 11 Navigating Ethical Dilemmas in Global Business Operations 8 6 11
NEWS Magna Legal Services Expands National Footprint with Merger of Basye Santiago Reporting Magna Legal Services (Magna LS), an ALM award-winning leader in court reporting, medical record retrieval and litigation consulting, is proud to announce its merger with Basye Santiago Reporting (BSR), a prominent court reporting firm based in Delaware. Founded over fifteen years ago, BSR has earned a reputation as a trusted leader in the Delaware market. The merger, effective March 17, 2025, was facilitated by Chase Culbertson, Head of M&A at Magna Legal Services. The merger positions both companies for even greater success, as the union forms one of the largest and most comprehensive litigation support and consulting firms in the country. With a combined workforce of over 800 employees, 4,000 court reporters, 2,000 interpreters and 100 litigation consultants across 30 locations nationwide. BSR’s founders, Yvonne Santiago and Shenna Basye-Cara, will continue to lead the BSR team, ensuring a seamless transition and upholding the firm’s excellent reputation. Clients of BSR will now have access to Magna’s full suite of services, including document translation, interpreting, medical record retrieval, social media surveillance, visual communications, jury consulting, investigative, and nationwide court reporting services. “We’re thrilled to unite with Magna Legal Services,” said Yvonne Santiago, Cofounder of BSR. “This merger allows us to provide even greater value to our clients by offering a wider range of services and delivering cost savings through bundled solutions, such as medical record retrieval, investigative services, and jury research. We’ve had a long-standing relationship with Magna’s founders and are excited to reconnect and work together on this new chapter.” Co-founder Shenna Basye-Cara echoed her sentiments, saying, “Our shared history with Magna’s leadership makes this partnership particularly exciting. With the merger, we’re positioning ourselves to serve clients not only in Delaware, but across the nation, with enhanced capabilities and efficiency.” Robert Ackerman, Chairman of the Board of Directors Emeritus of Magna LS, shared his enthusiasm, noting, “Having known Shenna and Yvonne for over 30 years, I am confident that this merger will be a seamless integration. We look forward to the combined strength of both companies as we continue to lead the industry forward.” Mark Williams, CEO of Magna Legal Services, expressed his enthusiasm for the merger, stating, “The combination of BSR with Magna LS will continue to strengthen our presence nationally, and particularly in Delaware and Pennsylvania. We are so enthusiastic to be joining forces with BSR and to further our national and global leadership together.” For more information on the full range of litigation services available through Magna Legal Services, or to schedule a deposition, please visit our website: https://magnals. com/services/court-reporting/
NEWS “Waldorf is a stable but improving location, and we’re delighted to join the St. Charles neighborhood,” said Stephen Catarinella, chief investment officer for CAPREIT. “We believe that there is significant operational upside with these communities that we can unlock through an infusion of capital improvements and our residentcentric approach to property management.” To enhance the resident experience, CAPREIT plans to employ its systematic program of surveying residents at key points within the leasing process to evaluate guest and resident sentiment regarding the property’s maintenance, amenities, safety, response time and overall value. CAPREIT Announces Acquisition of Two Apartment Communities in Waldorf, Md. North Bethesda, Md.-based CAPREIT (www.capreit.com), a fully integrated real estate operating company responsible for the ownership and management of more than $6 billion of multifamily assets in the U.S., announced it has acquired two apartment communities in Charles County featuring a combined 360 homes. The workforce-housing communities, Palmer Apartments and Smallwood Gardens, are adjacent to one another, just south of St. Charles Parkway in south Waldorf. CAPREIT is set to undertake a series of capital improvements on the properties, designed to elevate them to a premier choice for the discerning modern workforce renter. “As a leading workforce and affordable housing provider, we are always aiming to grow our portfolio in stable markets,” said Andrew Kadish, CEO of CAPREIT. “We’re excited to expand to Waldorf with the acquisition of these two communities, which are right in the backyard of our company headquarters. With a large footprint and vast institutional knowledge of the greater Mid-Atlantic market— which is our largest market with multiple regional headquarters—we viewed this as a prime opportunity with an abundance of upside. We look forward to getting started on the capital improvement process.” CAPREIT has dedicated $5 million toward upgrades, which will include a significant refresh of building exteriors, amenities, common areas, landscaping and additional community enhancements. Home interior renovations are also planned to help elevate the spaces to modern standards. Additionally, CAPREIT plans to implement energy-saving measures that have the potential to reduce utility costs by up to 25%. Palmer Apartments, located at 3008 Pilgrims Square, was originally built in 1980 and features 152 one- and two-bedroom homes. Smallwood Gardens (formerly Smallwood Gardens at Village Center of St. Charles) is positioned at 2640 Hamilton Place. Originally built in 1976, the two-story community features 208 one-, two- and three-bedroom homes. Each property features a swimming pool, playground, laundry facility and onsite maintenance. Apartment interiors include fully equipped kitchens, large walk-in closets, air conditioning and in-home climate control. Select homes feature private patios or balconies. The properties sit across from Smallwood Village Center, a 173,000 square-foot shopping center, and within walking distance of a stop on the VanGO bus line. The St. Charles neighborhood is located approximately 22 miles south of Washington, D.C., making it a popular option for those who commute to the key employment centers in the city. Palmer Apartments and Smallwood Gardens Add 360 Homes to Growing Portfolio
6 | Acquisition International, May 2025 Broadstone Risks: Creating Calm in Complexity Being within the public eye is something that many aspire towards, though it does not come without its unique set of difficulties. Prominent figures can encounter a variety of dangerous settings and individuals, often requiring them to seek professional protection and security. Broadstone Risks is a leading security and intelligence service provider that has lent its services to a number of high profile names and organisations. As Broadstone Risks is named in the Global Excellence Awards 2025, we learned more from CEO Peter Miles. Contact: Peter Miles Company: Broadstone Risks Web Address: www.broadstonerisks.com Broadstone Risks is an award-winning security and intelligence service promising to disrupt the evolving landscape of modern threats. The company serves a variety of clients within the public eye - whether operating within entertainment, corporate leadership, or diplomacy. Driven by the principles of discretion, foresight, and operational excellence, Broadstone Risks’ services are rooted in decades of sovereign and ultra-highprofile experience, where success is defined not by visibility, but by seamless integration and the complete absence of disruption. “We’re not reacting to the world – we’re reading it in real time. ” The world is evolving and with it, are Broadstone Risks’ services. In this modern age, risk is not merely confined to physical proximity; it travels through hashtags, location metadata, sentiment shifts, and digital patterns – long before it takes form in the physical world. To ensure that it remains up to date with such evolutions, Broadstone Risks offers Protective Intelligence, a core differentiator of its security services. Through the strategic use of social media intelligence, open-source data, and predictive threat modelling, the company proactively monitors and manages risks ahead of time. To ensure continued security in all aspects of the word, Broadstone Risks delivers real-time insights using keyword tracking, geofencing, and narrative monitoring. Layered seamlessly with travel logistics, itinerary planning, and physical operations, this innovative fusion enables the company to create truly dynamic, evolving protection frameworks for each client it serves. “It’s no longer just about being safe. It’s about knowing what is coming before anyone else does. ” In a competitive market, Broadstone Risks does not only stand out for its offerings but also for its operational approach. The company’s methodology is refined, discreet, and precise, centred around the belief that modern protection is not about standing in the way but about making space. Clients do not experience Broadstone Risks as a security presence, but as trusted enablers who understand how to navigate complex environments with grace and minimal footprint. “We pride ourselves on how easily we integrate into high-tempo, high-sensitivity environments,” Peter explained. “Whether we’re supporting a global music tour, an executive summit, or a high-profile personnel engagement, we often serve as the quiet axis around which complex logistics turn. That trust is earned – often behind the scenes – and deeply respected. In many cases, our clients entrust us to liaise directly with their wider teams, agents, or venues, allowing us to represent their interests fully and discreetly.” Moving forward, the company will further strengthen the protection industry by expanding access to its knowledge, without compromising the calibre of exclusivity that defines Broadstone Risks’ brand. Recognised as the Security and Intelligence Service Provider of the Year 2025 – USA, the company is preparing to launch two initiatives meticulously designed to further its mission of empowering through education and ensure the continued prosperity of the protection industry. Firstly, Broadstone Risks will be implementing an invitation-only tier to its services. This initiative will offer high-profile clients access to tailored briefings, private strategic support, and direct consultation with its senior intelligence team. Such a development provides more than security – it offers intelligent living for those navigating global visibility. Secondly, the company will be introducing a public accessibility line. Until now, Broadstone Risks has never had a publicly visible phone number – by design. For the first time, it will be opening a direct line of contact to the world through an initiative providing scaled versions of its protective intelligence tools to public figures, executives, and digital-first clients who do not yet require full-time protection but are still facing elevated risks. “The standard in our industry must evolve, and Broadstone Risks intends to help lead that evolution,” Peter announced. “In addition to the forthcoming invitation tier and public accessibility line, we are preparing to host a limited series of closed-door briefings for peers, corporate clients, and key stakeholders across entertainment, media, and executive risk. These sessions will explore the future of protective intelligence, particularly the convergence between psychological safety, digital exposure, and personal protection. For us, knowledge is protection – and sharing what we’ve learned is part of our responsibility to the industry.”
May 2025, Acquisition International | 7 Redefining Medical Record Reviews with AI for Legal and Insurance igitalOwl started as a solution to a problem faced by its CEO, former personal injury lawyer Yuval Man. Recognizing inefficiencies in how both insurance and legal professionals manage medical records, Yuval and his brother, Amit Man, DigitalOwl’s CTObegan working out a way to eradicate the inefficiencies associated with manually reviewing the medical records submitted as part of the personal injury claims process. Their answer was a system capable of analysing unstructured medical data to an impeccable level, including extracting meaningful data points and offering comprehensive summaries. Today, DigitalOwl empowers both insurance and legal professionals by allowing them to view, manage, and engage with intricate medical data in a way that was previously thought impossible – all at a fraction of the usual time and cost. It achieves this feat by leveraging workflows and using AI to create actionable insights from the results. Delivering these cutting-edge, AI-driven, medical record summary solutions, DigitalOwl is a company built on the cornerstones of security, transparency, and innovation – traits reflected in everything from its company culture to its proprietary AI technology. These core values are on display from a client’s first interaction with the team, with Yuval and co. working closely alongside them to answer any questions they may have and showcase the reliability of this game-changing platform. Once the solution is up and running, clients begin to experience its benefits immediately. The tailored nature of the solution means it is much more effective than other generic, open-source models, leading to better results. A spokesperson for the company explained: “Unlike open-source tools, our proprietary platform is designed to identify clinically relevant details and prioritize what underwriters, claims professionals, and attorneys care most about. For example, it can flag subtle symptoms of peripheral vascular disease that might otherwise get buried in the text, such as weak pulses or pain while walking.” What makes DigitalOwl even more impressive is that it goes beyond simply reporting these symptoms, instead, it clearly highlights their significance and demonstrates exactly how they may impact risk assessments. It can also track the level of effectiveness a treatment boasts, highlighting whether a condition such as heart failure is stable, worsening, or improving over a set period. Such insights offer both insurance and legal professionals the clarity they require to act with confidence. Most recently, this was seen in the company’s work with Legal & General America, with one of the firm’s C-Suite, Zach Pugh, searching for a way to both streamline his medical record review processes and improve the accuracy of his underwriting team. Using DigitalOwl, the insurer reduced post-audit issue effort by 60% and significantly cut medical record review times. One 370-page APS, for example, was analyzed in just five minutes, and about one-third of all cases required no additional review. Another distinguishing point of DigitalOwl is the rapidly advancing nature of the platform, with its constant updates reflecting customers’ ever-changing needs. Their new Case Notes product is one particularly fitting example of this. Powered by cutting-edge AI agents, the product boosts both the usability and efficiency rates of the platform. “The AI agents powering Case Notes operate in strict guardrails, ensuring they focus solely on the most relevant information for each case. This targeted approach prevents the system from pursuing irrelevant data or introducing bias and compliance issues, maintaining full compliance throughout. ” Excitingly, an enhanced version of Case Notes for claims professionals and attorneys has been in the works for some time, and has recently launched alongside a new, in-depth Chat feature. As for the latter, a spokesperson told us: “This innovative tool allows attorneys, underwriters, and claims professionals alike to pose complex, reasoningbased questions and receive tailored, context-rich responses. This feature also comprehensively understands inquiries, applies logic, and provides detailed responses that incorporate all relevant information in the user’s desired format.” In a landscape crowded with generic AI tools, DigitalOwl stands apart with proprietary technology purpose-built for medical record reviews and trained by an in-house team of industry experts to meet the needs of each line of business it supports. Helping professionals hit a higher standard of work and focus on what matters, the esteemed company has some exciting plans in the pipeline, further underpinning its commitment to innovation and excellence in this environment. Email: [email protected] Company: DigitalOwl Web Address: https://www.digitalowl.com/ Taking a bold yet responsible step into the future of AI in legal and insurance environments, DigitalOwl offers a leading, AI-driven platform empowering user to harness the full potential of medical data. By transforming complex medical data into structured medical record summaries, chronologies, and insights, the company demonstrably enhances decision-making processes, a feat that has earned its team the title of excellence in AI for Best Healthcare Data & Analytics Innovators 2025. D
8 | Acquisition International, May 2025 Creating Collaborative Business Outcomes: Why Tech and Finance Leaders Should Unite During the M&A Process n any competitive marketplace there are lots of drivers for companies to merge and acquire each other. Sometimes it’s about expanding market reach by tapping into markets that a competitor has better footings in, or it could be about being better positioned to succeed against bigger competitors. The benefits are very often easy to explain, from cost savings and removing duplicate teams, processes or capabilities to driving economies of scale associated with higher production rates. But the stakes are high and none of these benefits are guaranteed. All businesses are unique – even franchises and chains – because of the people, the customers, geography, laws, timing and all manner of other constraints, meaning the process of merging businesses is not at all straightforward. It’s easy to get caught in the trap of believing that if two companies work in closely related fields, use technology from the same vendors and follow the same legal requirements for accounting and financial practices, that merging their operations should be straight forward. Unfortunately, nothing could be further from the truth. M&A teams will be formed on both sides, and external advisors will be brought in to help with the process, but very often people’s eyes are firmly fixed on the commercial prize – the upside, the potential, the excitement. Integrating processes and systems is very often given a back seat in the process. It’s something that rears its head after the deal is done, and that’s where the uncomfortable truths start to appear: those systems from the same vendor have been configured completely differently by both companies, and the processes they support are totally incompatible. At this point, the costs of integration can easily skyrocket because we’re no longer talking about reconfiguring some systems or tweaking some processes, we’re talking about complete and fundamental change to how one or both organisations operate. And that was never part of the acquisition plan! This sounds almost too absurd to be true, but it happens more often than many would like to admit. Technical and operational due diligence are some of the easiest cans to kick down the road, but the impact of getting it wrong can be massive. The level of risk being ignored can be huge and it can mean the difference between being able to recognise those commercial benefits or not. That’s exactly what happened following a $10 billion deal which saw Goldcorp Inc acquired by Newmont Mining Corp. The newly formed Newmont Corporation became one of the world’s largest gold producers. But SAP Insights reports that the acquisition was soon beset with problems, including multiple duplicate and different IT systems that somehow had to be combined, as well as varying cybersecurity policies which increased exposure to risk for the new company. An early tech focus What if things were different? What if the M&A processes brought technology leaders to the table at the earliest opportunity, to work in partnership with the rest of the deal team? This would enable them to undertake a thorough assessment of the existing technology resources across both companies, including all of the policies and processes, the hardware and software used by both, and the skills of the people within each department. While it takes more time, it’s time well spent. In many cases these are some of the biggest transactions companies will ever do – far bigger than any individual client deal or property purchase, so using tools like targeted PoCs to identify fundamental issues with compatibility of systems as early in the deal as possible will pay dividends. Being able to assess the work involved in creating unified cyber security policies, training plans for staff who will need to use new technology, how to rationalise and consolidate cloud and on-premise technologies – these are all critically important to successful integration. Ultimately it’s about being realistic, honest and responsible about what is achievable and what the costs are likely to be. And those assessments need to be given the weight and importance they deserve in the deal making process. It’s a concept supported by the BCS, the Chartered Institute for IT, which states: “In order for the merger to be a success, IT leadership needs to be involved earlier in the M&A journey to better equip organisations in realising success earlier and at a lower cost.” When tech becomes a stumbling block We don’t have to look very far to find examples of M&A deals falling apart quite dramatically. And it’s not just about financial penalties – there can be serious regulatory, reputational and even political impact when things go wrong. When Banco Sabadell bought TSB, customer bank records were moved on to a new system – a project costing £450 million which was expected to save £160 million a year. But the process was rushed and the technical due diligence was largely skipped. The result was customers locked out of their online accounts for days unable to pay their bills, not to mention being able to see other customers’ accounts. These issues cost TSB Chief Executive By David Tyler, Founder and Director of Outlier Technology I
Creating Collaborative Business Outcomes: Why Tech and Finance Leaders Should Unite During the M&A Process Paul Pester his job and added more than £176 million in costs to the acquisition deal in compensation, lost income and additional resources (Raconteur). Sprint hoped their $35 billion majority stake acquisition of Nextel Communications would help them become the third largest telecommunications provider in the US at the time. The upside was clear – gaining access to each other’s customer bases would see both companies grow exponentially. However, the two companies had no overlaps in terms of the technology – their networks were fundamentally incompatible, making it incredibly difficult to merge operations and resulting in a huge market share loss (M&A Science). But it’s not always like that. One example where technology teams had been consulted early in the process was the proposed acquisition of the Williams & Glyn bank branch network by Santander. The technology teams found that ‘unpicking the existing technology’ was simply too complex, and the whole deal was halted (Raconteur). Whilst it was no doubt a blow to those who’d spent time and money on investigating the feasibility of the deal, it would ultimately have much more costly had they not stopped the process at that point and proceeded without realising the tech issues they were facing. This is a rare case of technical and operational experts being given the time, understanding and priority to make an honest assessment – this assessment revealed the problems involved which put a stop to a potentially disastrous deal. How to avoid the pitfalls While the process may not be simple, the concept of mitigating risks surrounding merging technologies is straightforward enough. But to mitigate or accept a risk, you have to know it exists and then understand it: this is what due diligence is for. We’re more than comfortable performing financial due diligence, so adding technical due diligence shouldn’t be an alien concept. Technical leaders need to be given time and resources to identify risks and consolidation opportunities and, once you have the results of their investigations coming back, they need to be taken seriously. History has shown us time after time, once the deal has been signed and the process of merging the two companies, or assimilating one company into the other, has begun, it’s too late to highlight any red flags which may have stopped the M&A process had they been discovered before the ink on the contract dried. David Tyler
10 | Acquisition International, May 2025 Aug22499 Tax Season Prep: The Complexities of International Tax Compliance Key Challenges for Business Professionals Managing tax obligations across borders is a year-round challenge. Business professionals must balance daily operations with the complexities of multiple, conflicting tax regimes. The most pressing challenges they face include the following. Constantly Evolving Regulations Tax laws are always changing, and keeping up with new developments is critical to maintaining compliance. For instance, scheduled changes to U.S. international tax provisions in 2026 — such as tax rate increases to GILTI, FDII and BEAT — are already prompting companies to reevaluate their positions in 2025. With Congress still considering whether to let these changes go into effect or revise them, uncertainty remains. Additionally, developments, like the European Union’s adoption of Pillar Two rules, add more pressure for multinational businesses to coordinate strategies across jurisdictions. Complex Jurisdictional Requirements Each country operates under its own tax codes, documentation standards and reporting deadlines. Navigating this patchwork can lead to missteps, especially when company leaders don’t fully understand the local nuances. Risk of Noncompliance and Penalties The consequences of falling behind on compliance can be severe. Tax authorities across the globe are increasing audits and enforcement efforts, with penalties ranging from monetary fines. Errors in transfer pricing or incomplete documentation can easily trigger reviews that are costly to resolve. Critical Aspects of International Tax Compliance International tax compliance requires more than meeting filing deadlines. It also has to do with handling a series of technical and interrelated components that need strategic oversight and an understanding of each jurisdiction’s expectations: • Transfer pricing: Tax authorities expect businesses to price intercompany transactions at arm’s length, meaning the same amount as if the transaction were conducted between unrelated parties. Failure to meet this standard can trigger audits and even a 40% penalty if there’s a tax deficiency of over $20 million. • Permanent establishment rules: Understanding what constitutes a permanent establishment (PE) is critical for determining where income is taxable. A PE refers to a fixed place of business that gives rise to local tax obligations. However, definitions and thresholds vary by country and tax treaty. • Value-added tax (VAT) compliance: VAT is a consumption tax used in many jurisdictions. Businesses must register for it in each relevant country, correctly charge the appropriate rate and submit regular filings. • International tax treaties: Tax treaties between countries prevent double taxation and resolve jurisdictional disputes. However, leveraging treaty benefits requires navigating specific eligibility rules and maintaining thorough documentation. Practical Guidance for Compliance To stay ahead of international tax requirements, companies must adopt a proactive, compliant strategy. The following best practices can help businesses minimize risk and ensure consistent global tax alignment. 1. Leveraging Voluntary Disclosure Programs When errors or omissions exist — such as unreported foreign income or misclassified transactions — voluntary disclosure programs offer a pathway to compliance. Many tax authorities provide them to encourage transparency by allowing companies to self-report issues in exchange for reduced penalties or immunity from prosecution. For example, the U.S. IRS offers streamlined procedures for taxpayers who failed to report foreign accounts but are now coming forward in good faith. Participating in such programs can resolve outstanding issues. 2. Maintain Proper Documentation Documentation includes detailed transfer pricing reports, intercompany agreements, proof of residency for treaty benefits and VAT invoices. Maintaining organized, up-to-date records supports accurate filings and strengthens the company’s position during audits. 3. Implement Strategic Tax Planning Thorough tax planning allows businesses to reduce exposure while staying compliant. This may consist of structuring cross-border transactions to take advantage of tax treaties or timing income and expenses for optimal efficiency. 4. Collaborate With Experienced International Tax Professionals Working with a team of knowledgeable advisers is essential. These professionals understand regulatory changes and compliance risks and can devise tailored solutions. Regular meetings with tax counsel can also ensure the business is well off with evolving legislation. 5. Utilize a Global ERP System for Tax Management A global enterprise resource planning (ERP) solution streamlines tax compliance by centralizing financial data and ensuring consistency across entities and regions. These systems often include tax calculation engines, compliance tracking features and reporting. With the right configurations, an ERP can automate VAT handling and track documentation for treaty eligibility. Prioritizing Planning for Compliance As global tax environments shift, businesses must recognize that international compliance involves various endeavors. Therefore, careful attention and tailored strategy are essential to having a successful tax season. By investing in best practices, globally active organizations can plan for what’s to come next and stay prepared. International tax compliance has become increasingly complex for today’s globally active companies. With operations crossing borders and tax authorities heightening enforcement, business professionals face growing pressure to ensure accurate and timely reporting. As tax season approaches, preparation is critical to maintain financial health and reputation.
May 2025, Acquisition International | 11 decisions in recruitment and surveillance may streamline operations, but they also risk bias, overreach and job displacement. AI was linked to 3,900 job losses in the U.S. in May 2023 alone. The global regulatory landscape complicates matters further, as many countries still lack clear oversight mechanisms, leaving room for questionable practices. This inconsistency raises a key question: Should companies take advantage of regulatory gaps or hold themselves to a higher standard everywhere they operate? The answer lies in building global AI policies grounded in fairness, transparency and accountability. Cultural Norms vs. Corporate Values Cultural norms shape businesses but sometimes clash with a company’s core moral standards. In some countries, gift-giving is a respected tradition. In others, it can be seen as bribery. Negotiation styles also vary — what one culture views as assertive, another might see as disrespectful. Even gender roles can create tension, especially when global companies operate in regions where workplace equality isn’t the norm. These differences put leaders in a tough spot — respecting local customs without compromising company values. The solution isn’t to lower ethical standards but to develop stronger cultural intelligence. Understanding the context and setting clear boundaries allows businesses to operate with respect and moral consistency. Building an Ethical Framework Building a unified code of ethics should balance global consistency and local adaptability. A well-crafted code should outline clear, nonnegotiable values while allowing room for regional interpretation. Many successful companies appoint a dedicated compliance officer to stay ahead of shifting regulations and monitor employee conduct, which helps teams stay aligned with international standards. Involving local leaders is also crucial because it can tailor the messaging, explain the “why” behind policies and act as trusted advocates for ethical behavior. Ongoing training programs keep expectations clear, while whistleblower protections and routine audits help surface issues early and reinforce accountability. However, nothing fortifies ethics more powerfully than leadership by example. Making Ethics a Core Part of Business Strategy To navigate the global ethical landscape, companies need proactive policies, a strong code of conduct and consistent training that empowers teams to make the right decisions. Aligning moral responsibility with business resilience is a wise strategy for long-term success. Navigating Ethical Dilemmas in Global Business Operations Doing business across borders is no simple task. Companies must navigate a maze of labor laws, environmental standards and cultural expectations that often clash from one country to the next. While staying legally compliant is essential, it’s not always enough. A perfectly legal decision in one region might raise serious ethical concerns in another. This disconnect creates morally gray zones where business leaders must weigh profit against principle and short-term gains against longterm trust. In these moments, companies reveal who they are and what they choose to stand for. Labor Standards Global labor practices expose sharp wage disparities, working conditions and worker participation — especially when companies operate across countries with vastly different laws. Between 1979 and 2021, the average income of the richest 0.01% of U.S. households grew nearly 27 times faster than that of the bottom 20%, reflecting a deepening divide that’s hard to ignore. This gap widens further when businesses outsource to regions with minimal worker protections and limited rights to organize. While outsourcing often reduces costs, it raises tough ethical questions. More than ever, stakeholders expect brands to take the high road. The reputational risk of appearing exploitative can quickly outweigh the short-term financial gains of cutting corners in low-compliance regions. Environmental Regulations In many places, weak environmental laws create moral loopholes that tempt companies to do the bare minimum. Businesses may legally dump waste, overconsume resources or emit harmful pollutants simply because local regulations are outdated or poorly enforced. It’s no longer enough to meet the local standard. Stakeholders want to see measurable efforts to reduce harm and promote long-term ecological health. Brands that lead with sustainable practices often enjoy stronger loyalty and a more resilient reputation in a world where environmental impact can make or break a business. Anti-Corruption Practices In some parts of the world, bribery and facilitation payments are simply considered the cost of doing business. Whether speeding up permits, securing contracts or avoiding bureaucratic delays, these unofficial fees are often deeply ingrained in local business culture. For example, U.S. companies must comply with regulations like the Corporate Transparency Act. It requires disclosure of beneficial ownership to help combat terrorism financing and money laundering, which reinforces the need for transparent operations. For global businesses, the challenge is maintaining consistent standards across all locations, regardless of local norms. That means building internal policies reflecting an organization’s values everywhere. Ethical Use of AI Across Borders AI reshapes how businesses monitor and manage compliance and creates ethical challenges that leaders can’t ignore. Automated
acquisitioninternational.digitalRkJQdWJsaXNoZXIy MTUyMDQwMA==