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?

2

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

3

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?

4

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.

5

Your options and Modeling

• The spectrum:

• Modeling: understanding the economy, the clients, and your costs in other locations.

• Doing NOTHING is an option.6

Sourcing

Distribution Agreement Acquisition

Joint Venture Green Field

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”

7

What phase should my business be in in order to expand?

• Stable• Management:– Sufficient– Talent– Depth

• Is it dangerous to grow too quickly?

8

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 non-financial.

• Culture: awards and organizational charts.

• Training: programs and sponsorship.• Make sure they feel part of the team.

9

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

10

How can I avoid costly mistakes?

Making mistakes is ok if you learn from them…

11

How can I avoid costly mistakes?

…Leaning from others’ mistakes generates

income.

12

Thank YouXie XieGracias

ObrigadoDanke Schön

MerciGrazie

13

Gabriela RodilAssociate – Plante & Moran Global

Servicesgabriela.rodil@plantemoran.com

P: 312-602-3508

Lou LongoPartner – Plante & Moran Global Services

lou.longo@plantemoran.comP: 312-602-3676

14