Interpreting for mergers and acquisitions (M&A)

Mergers and takeovers are always delicate situations – and especially so if the companies involved are rooted in different cultures and different languages. For this reason, interpreting for a merger or an acquisition is often far more than just the correct transfer of words from one language to another. As interpreters during a corporate acquisition we often build bridges between the cultures, because a major deal of this kind is not going to come to fruition unless the negotiating parties trust each other.

In 2021 – in the middle of the COVID pandemic – a US mechanical engineering company wanted to acquire a German supplier. We were engaged to interpret a series of meetings between the investor and the employee representatives in Germany. Acting as liaison interpreters, we were able to help both sides eliminate the uncertainties that existed before and during the takeover.

Employee representation was new territory for the US investor

We were engaged by the German law firm that was legally representing the American company in Germany during the acquisition. Both parties had concerns regarding the transaction, and our job was to make sure that the language barrier between the works council and the investor did not constitute an additional obstacle.

The Americans had never had to deal with anything like the German works council or the trade union before. In the US there are no similar bodies representing the workforce, and the investors therefore had no experience with this sort of employer-employee dialogue. However, the investor had recognised the important role played by employee representation in the takeover process, and regarded the discussions as very important.

For its part, the works council – as is often the case with mergers and acquisitions – was worried about job cuts, restructuring, and whether the different corporate cultures could be aligned.

Trust and confidentiality are essential

Trust and absolute confidentiality are essential during such corporate takeovers to ensure that the deal does not collapse. To create the necessary trust with our client in advance, we held a briefing meeting with the American lead negotiator on Zoom. This enabled us to get to know one another and he had a chance to explain the background to the situation and the current status of the negotiations.

Several things were important for us to understand:

• the reason for the acquisition
• the strategic goals
• the objectives of the talks
• potential sticking points
• worries and concerns (on both sides).

Furthermore, we studied the business areas, products and structures of both companies and compiled a press review. This provided the best possible preparation for the negotiations and we were in a position not only to interpret the participants 1 to 1, but also to put what they said into context.

First choice: consecutive interpreting

In this takeover process, we supported the negotiations between the investor, his lawyers, a committee from the German works council, and a representative of the IG Metall trade union through several rounds of negotiations until they reached an agreement.

The type of interpreting chosen here was consecutive interpreting. This means that short units of information – or sometimes longer passages – are translated into the respective other language. Depending on the complexity and the client’s wishes, the units may be longer or shorter, and the participants can ask for clarification.

Advantage for the interpretation: face-to-face presence

While the client was planning the negotiations, he had considered  holding the meetings solely online. We strongly advised him to hold in-person meetings. Martina Wieser said, “Being present at the discussions in person has huge advantages compared with video conferences. This is because as interpreters we can take the dynamics in the discussions into account, along with the nonverbal communication, such as body language, facial expressions and intonation. In particular when different cultures meet, it’s important to consider not only each individual word, but also the motivation and tone of the statements – and things that are not explicitly stated but which also convey information. We can only do that if we are in the room with the participants, so we can pick up on all these aspects and communicate them accordingly.”

Mechanical engineering

In-person event

Negotiation

10 to 15

Interpreting

Consecutive

German, English

Frankfurt am Main, Germany

Have a look at this selection of our past projects and compare your requirements with the events where we have realised complete solutions with interpreter services and equipment.