Global mergers and acquisitions (M&A) present both exciting opportunities and complex challenges for companies expanding their global footprint. According to KPMG’s 2024 M&A Mid-Year Survey, 58% of PE firms and 52% of corporate companies plan to pursue at least one strategic transformational M&A in 2025 — highlighting a renewed optimism among dealmakers.
For Chief Financial Officers (CFOs), these transitions can trigger a host of financial, operational, and compliance hurdles, especially in cross-border deals. To streamline the process, executive finance teams can leverage Employer of Record (EOR) solutions.
EORs provide global payroll management and ensure employment compliance, reducing financial risks and enabling smoother transitions and faster deals. Here is a complete breakdown of how an EOR can support and guide CFOs throughout the global M&A process.
The CFO’s critical role in mergers and acquisitions
CFOs are at the helm of any successful M&A transaction. From overseeing due diligence to managing financial integration, CFOs are foundational in ensuring the transaction maximizes value.
In global M&As, this role becomes even more crucial, as finance executives must manage cross-border regulations, including tax structures, payroll and tax reporting, and financial compliance. Their expertise directly impacts whether the merger will result in long-term success or financial strain.
Understanding the complexities of global M&As for CFOs
Global M&A transactions are inherently complex, and executive financial teams face unique challenges, including:
- Navigating the employment laws of different countries
- Managing currency fluctuations
- Ensuring compliance with in-region tax regulations
- Integrating multiple financial systems and tech stacks
Cross-border payroll solutions become increasingly important, as different countries have varying payroll and benefits regulations. Without an EOR, ensuring accurate and compliant compensation for a global workforce is time-consuming and increases the risk of noncompliance, which could lead to financial disruptions and penalties.
Additionally, CFOs and their teams have to account for the integration of disparate financial systems and reporting practices across multiple regions. These complexities can stall mergers if not addressed effectively.
Leveraging an EOR for seamless financial integration
An Employer of Record (EOR) offers a powerful solution for CFOs managing global M&As. An EOR handles employment compliance in multiple countries, including cross-border payroll, tax withholdings, and benefits administration. This allows CFOs to focus on strategic workforce planning and budget allocation without the administrative burden of ensuring local compliance.
With EOR solutions, C-level executives can quickly onboard and manage global talent while avoiding delays caused by regulatory concerns. By simplifying employment processes, EORs enable CFOs to execute deals more smoothly and ensure business momentum across global markets.
EORs can provide financial benefits for global M&As.
One of the most compelling reasons CFOs leverage an EOR for global M&As is the significant cost and time benefits:
- Eliminates the need for entity setup: EORs reduce the costs associated with establishing local entities in every country involved in the merger. This enables financial executives and their teams to operate in these countries in minutes, not months — without establishing a formal entity.
- Streamlines labor law compliance: EORs mitigate financial risks by ensuring compliance with local labor laws and tax regulations, reducing the chances of fines or legal repercussions. Finance executives can better manage their budgets with the predictable costs associated with using an EOR, rather than managing the variable expenses tied to entity setup and maintenance.
Talent retention: a key priority for CFOs during global M&As
Talent retention can be the difference between success and failure for the newly formed company. In global M&As, this challenge is compounded by the need to offer competitive, compliant benefits and total compensation packages for employees in different geographies.
Fortunately, EOR solutions help CFOs and other C-suite leaders retain key talent by ensuring that employees receive competitive compensation packages, regardless of where they’re based. This helps the newly formed company maintain operational stability while reducing the costs associated with mass turnover.
Why CFOs should prioritize EOR solutions to enhance M&A strategy
Given the complexities and financial risks associated with global M&As, CFOs should make EOR solutions a core component of their M&A strategies. By leveraging an EOR, finance executives can simplify global payroll and tax compliance, reduce operational costs, and make more strategic decisions about fund allocation.
An EOR partner means CFOs can focus on their primary responsibilities: managing the financial health of the organization and ensuring that the M&A delivers maximum deal value.
In an agile, globalized business landscape, where M&A activity often spans multiple regions and countries, finance teams and leaders who embrace EOR solutions are better positioned to lead their companies through successful transitions.
Choose G-P for compliant and smooth M&As.
Partnering with an EOR for your global M&A isn’t just a smart financial move — it’s a strategic profit play. By removing the administrative burden of global M&As, CFOs can focus on what really matters: executing successful deals and maintaining business momentum.
If you’re a CFO and would like to streamline financial integrations or enter new markets, G-P can help. Our industry-leading global employment products and EOR solutions facilitate a successful M&A deal, saving time and money, while reducing risk when acquiring a new asset or entering into a wind down.
Download our M&A playbook for executive insights or contact us today to learn more about our solutions.
