Doing business abroad can make strategic sense. However, it can tie you down for years if you underestimate the liability risks.
When medium-sized companies consider expanding abroad, they usually focus on sales, service and costs. When it comes to large deals, there is another issue that many SMEs underestimate: legal and liability risks. The Bayer/Monsanto case is striking – precisely because it shows how long a risk can have an impact.
The deal: large, strategic – and risky
Bayer completed its acquisition of Monsanto in 2018. Bayer itself puts the purchase price at 63 billion US dollars (including debt).
This also brought the Roundup product and the associated wave of lawsuits into the company.
The bottom line: the risk of lawsuits remains – even if you might be “right”
Lawsuits have been ongoing in the US for years, claiming that Roundup causes cancer (Bayer disputes this). The important thing here is not the medical debate, but the economic reality: The dynamics of litigation and settlements create uncertainty for many years.
In mid-February 2026, Reuters reported on a new proposal: Bayer had submitted a plan for a settlement of up to 7.25 billion US dollars to address tens of thousands of current and future lawsuits.
The AP also describes the same proposal, emphasising that court approval and acceptance rates are relevant and that the debate surrounding a possible decision by the US Supreme Court is further influencing the situation.
Reuters also reports that investors remain sceptical about the proposal – precisely because of these uncertainties.
What SMEs can learn from this – without corporate bias
A medium-sized company does not make £63 billion deals. But the pattern is identical in:
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Entering the US market with product responsibility
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Acquisition of a local competitor
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Distributor models with product liability
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Chemicals/industrial water/plant engineering (environment, safety, standards)
The most common misconception: “We have a good product, so it’ll be fine.”
Abroad, the following also apply: class action logic, labelling rules, burden of proof mechanics, legal costs, settlement pressure. Even if you are convinced that you are technically correct, this can tie you down financially.
The practical toolbox: “Price” risk, don’t “discuss” it
Instead of “Is the risk real?” (endless debate), it is better for decision-makers to ask:
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Scenarios: Best case / Base / Worst case
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Probabilities: estimate conservatively
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Costs per scenario: incl. legal costs, time, management commitment
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Mitigation: what can be controlled? (contracts, insurance, product changes, warnings, partner structure)
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Stop criteria: when should the process be terminated?
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Pricing logic: what must the deal/market entry look like to make the risk worthwhile?
What SMEs can learn from this
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Foreign countries are not just markets, they are also legal jurisdictions.
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Risk is rarely a simple “yes/no” question. Risk is price, duration, controllability.
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Good decision-making templates need scenarios – not just arguments.
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“AI-supported” helps with collecting and organising. People have to evaluate and decide.
Sources: Bayer press release on the Monsanto acquisition; Reuters/Associated Press on the settlement initiative Feb 2026.
