Rationalization of Your International Business and Best Practices

Rationalization of Your International Business and Best Practices for Growth and Expansion

Introductions and Agenda • • • What is rationalization? What makes sense for my company? Should I consider a Joint Venture? Your options and Modeling What are the best practices for growth and expansion? • What phase should my business be in in order to expand? • How do I establish, develop, and retain key role personnel overseas? • How can I avoid costly mistakes? 1

What is rationalization? • • Data driven Based on strategy What is a win? Steps you night have to take within your organization: – Business structure – Management structure 2

What makes sense for my company? • How do I know what markets are best for my company? • How do I get started? • How do I find reliable contacts in a foreign country? • What is the best structure for my business? • What are the tax implications to the company and employees? • How do I take full advantage of exchange rates? 3

Should I consider a Joint Venture? • Consider? Yes. • Assume is only option? No. • Clients usually think JV is the way in: – May get contacted by someone – You think it is how you need to enter a new market. • Analyze how much it takes to do it on your own and compare to JV and other options => Modeling. 4

Your options and Modeling • The spectrum: Sourcing Distribution Agreement Joint Venture Green Field Acquisition • Modeling: understanding the economy, the clients, and your costs in other locations. • Doing NOTHING is an option. 5

What are the best practices for growth and expansion? • RATIONALIZATION: data driven decisions. • Avoid common pitfalls. • What are the most common mistakes/pitfalls? – – – Lack of aligned economic interest. Overcommitting Short term focus with high return expectations. Overly concerned with domestic market. Trust everyone, but make sure you are always cutting the cards. – You need to be from Missouri. The “Show me State” 6

What phase should my business be in in order to expand? • Stable • Management: – Sufficient – Talent – Depth • Is it dangerous to grow too quickly? 7

How do I establish, develop, and retain key role personnel overseas? • You have to use psychological profiling for identifying and accessing talent. • Incentives: financial and nonfinancial. • Culture: awards and organizational charts. • Training: programs and sponsorship. • Make sure they feel part of the team. 8

How can I avoid costly mistakes? • Cross functional approach: not driven by sales alone. • Understand client values in different markets => Structure business accordingly. • Get the right people to help you: – independent; – fiduciary duty to you only 9

How can I avoid costly mistakes? Making mistakes is ok if you learn from them… 10

How can I avoid costly mistakes? …Leaning from others’ mistakes generates income. 11

Thank You Xie Gracias Obrigado Danke Schön Merci Grazie 12

Gabriela Rodil Associate – Plante & Moran Global Services gabriela. rodil@plantemoran. com P: 312 -602 -3508 Lou Longo Partner – Plante & Moran Global Services lou. longo@plantemoran. com P: 312 -602 -3676 13