International expansion is a viable strategy for companies seeking to grow their businesses. It’s a strategy for diversification, for servicing new and existing clients, and for achieving sustainable financial growth. Before venturing into these new markets, a business must do its homework, including understanding the people and the culture of the targeted markets, the legal and tax implications of operating in a foreign country, and the likelihood of success of the intended product and service offerings.
Situation and Complication
The principals of a nationally respected professional services provider recognized the advantages of expanding its business overseas and made the decision to proceed. But first they enlisted the assistance of a Navigare partner to lead the process. From the beginning, the Navigare partner insisted the company must commit to being a good corporate citizen, one that conducts itself in strict compliance with local laws and business regulations, and who, along with its team members, immerses itself in the culture of its host country.
Approach
A strategic expansion plan was developed by a team consisting of company leadership and the Navigare principal, who was als0 responsible for the execution of the plan.
After much research and deliberation, it was decided the initial step of the expansion would be via acquisition. Upon identifying the best market for the initial entry, the optimal target was identified. Within a short period of time the Navigare partner negotiated a transaction substantially less than the parameters approved by the company, conducted diligence, and orchestrated a successful integration. This acquisition would serve as the foundation upon which all future global expansion would be based.
Post-acquisition efforts focused on entering additional foreign markets. Over the next 18 months, the company established foreign entities in five additional markets. For each such expansion, the Navigare partner identified market specific professionals to counsel the company, a critical component of all global expansion efforts. These professionals included lawyers, accountants, human resource professionals, as well as cultural consultants who provided vital information to company leadership and team members.
Outcome
Fast forward three years and the company is now known as the standard bearer of excellence throughout its international markets. This is a direct result of a well devised strategy, an efficient and effective execution of that strategy, a commitment to doing business the right way, and the Navigare partner who was committed to the goal of sustainable value creation for the company.
