International Expansion Far Outweighs M&A as a Legal and Compliance Execution Burden, CSC Research Finds

• International expansion far outweighs M&A as a legal and compliance execution burden, cited by 74% of senior cross-border professionals versus 28%
• 54% often redo work because entity or ownership information is incomplete or outdated
• Half say information gaps can add one to two weeks to cross-border work

WILMINGTON, Del.--(BUSINESS WIRE)--International expansion is creating a far heavier legal and compliance execution burden than M&A itself, with nearly three quarters (74%) of senior cross-border professionals citing market entry or international expansion as a leading burden, compared with just 28% for M&A transactions, according to new research from CSC, the leading provider of global business administration and compliance solutions.

The challenge extends well beyond deal execution. Ongoing entity governance and compliance is cited by 71% of respondents, highlighting the operational burden of establishing and maintaining a presence across multiple jurisdictions.

CSC’s new report, The Cross-Border Readiness Gap: Navigating the Legal and Compliance Burden of International Expansion, draws on the views of 200 senior professionals globally with direct experience of cross-border transactions, expansion, restructuring, and entity or compliance work.

Fragmented entity and ownership information is a major source of that complexity. More than half (54%) say they often have to redo work because information is missing, outdated, or inconsistent, while a further 44% experience this sometimes. Entity set-up is the biggest individual friction point, cited by 63%, while 51% say duplicated work is the single biggest cause of coordination problems.

“The real complexity of international expansion often comes after the initial decision to enter a market,” says Myrna Reijnders, market leader for the Americas at CSC. “Once you enter a new market, you still have to get the entities, directors, bank accounts, tax registrations, and ongoing compliance right—often across jurisdictions that all work differently. That is where small gaps in information can quickly become delays. Having the right data, a clear plan, and the right partners involved early makes a real difference.”

Those delays can be material. Half of respondents say entity, compliance, or ownership information issues can add one to two weeks to cross-border matters, while 16% report delays of three to four weeks. Nearly half (48%) also cite bank account opening or KYC checks as a source of rework, unplanned legal effort, or delay.

In response, organizations are tightening ownership and standardizing processes: 66% are assigning a clear owner for cross-border work, 60% are creating a standard “ready-to-close” information pack, and 53% are involving compliance teams earlier. At the same time, 44% are outsourcing more specialist work and 43% are investing in entity management technology.

“For in-house teams, the challenge is often less about understanding what needs to be done and more about coordinating it efficiently across multiple markets,” added Ian McConnel, chief legal and risk officer, CSC. “Technology can bring greater consistency and visibility, while outsourcing specialist work gives teams access to the expertise and capacity they need at the right point in the process. Together, that can reduce duplication and make cross-border execution much smoother.”

Frequently asked questions about cross-border expansion

• What is a cross-border readiness gap?
  • A cross-border readiness gap occurs when entity, ownership, compliance, KYC, data, and filing information is not coordinated early enough to prevent delays, rework, or duplication.
• How does international expansion create a greater legal and compliance burden than M&A?
  • International expansion generates ongoing entity, banking, KYC, tax, licensing, filing, and governance obligations.
• What most often causes rework or delay in cross-border matters?
  • Entity setup was the leading cause of rework or delay, followed by bank account opening or KYC checks.
• How are organizations improving cross-border readiness?
  • Organizations are improving readiness by assigning a clear owner, standardizing a ready-to-close information pack, and involving compliance earlier.

Download a copy of CSC’s report, The Cross-Border Readiness Gap: Navigating the Legal and Compliance Burden of International Expansion.

¹ CSC, in partnership with Pureprofile, surveyed 200 senior professionals globally across legal advisory, corporate strategy and private capital, all with senior-level responsibility and recent experience of cross-border deals, expansions, restructurings, or entity and compliance projects. Respondents were based across North America, Europe including the U.K., Asia Pacific, and Latin America.

About CSC
CSC is the leading provider of business administration and compliance solutions, offering industry-leading expertise and unmatched global reach to alternative fund managers and capital markets participants. Leveraging deep institutional experience and a tailored approach, CSC delivers a comprehensive suite of fund administration, trust, agency, and compliance services to support a wide range of private and public market transactions, complex fund strategies, and scalable operations.

As the trusted partner of choice for more than 75% of the PEI 300 and 90% of the Fortune 500^®, CSC helps clients navigate operational and transactional complexities across more than 140 jurisdictions and various asset classes. With extensive worldwide capabilities, our expert teams provide solutions tailored to each client’s needs. Privately held and professionally managed since 1899, we combine global reach, local expertise, and innovative solutions to help our clients succeed.

We are the business behind business^®. Learn more at cscglobal.com.