Posted on: July 4th, 2014

Global Business Expansion

Five important points to consider before embarking on your business expansion plans

In today’s global economy a business can face competition from anyone in any corner of the globe. This may have left you wondering about the need to expand your business on a global scale.

However, before you embark on a business expansion plan, it is wise to consider the following pointers.

Determine if your products and/or services are a fit for the global marketplace:
This is the first and most important point to consider. Ask yourself questions like, “How will my product/service be accepted by the global market?”, “What is the scope of the particular product/service in a particular country?” and “Will supply constraints or technological advances render the product outdated in the future?”
Choose the best possible business model:
You may choose to enter a foreign country through any of the following ways: exporting, importing, joint ventures, licensing or offshore production. Whatever may be your preferred mode of choice for business growth, be sure to weigh out the pros and cons of the particular business model and check to see how it will translate in real world conditions.
Research your target market:
Similar to establishing a new business, business expansion also requires a considerable amount of research. While high demand for a particular product or service might be a good lead, other factors such as environmental requirements, manufacturing guidelines, distribution networks, etc., of the target market should also be considered.
Put together a sound business plan:
More often than not business expansion at a global location equates to setting up of an entirely new business plan. Your new plan should take into account a number of factors including, potential markets/sources/customers; business funding (both for initial and subsequent cash flow); legal, regulatory and licensure requirements; Import/export pricing strategies; sales model, additional costs, etc.
Seek professional advice and assistance:
One size never fits or works for all. Since every company and market is different, it is always prudent to seek professional advice. Connect with the chambers of commerce, trade alliances and local Small Business Administration (SBA) offices in your area. Seek the expertise of a reputed financial services firm who can advise you on the best business funding options, and work with you to develop a good business plan.

Attract Capital, a financial advisory firm dedicated to the business growth of mid-sized companies, can help your company with its business expansion plans. Our advisory services are aimed at providing sound financial solutions for your various business needs. Contact us today.

As the Fed decides to ease interest rates, middle market acquisition financing structures will benefit in a number of ways. The underlying values of middle market companies will increase leading to a higher enterprise value and lower loan to value ratios for existing portfolio companies of acquisition financing lenders.

The role of acquisition financing is infrequently elevated above a functional transactional one. When a business needs financing to acquire, they go to the market and source acquisition financing to supplement their equity investment to close the deal. Despite existing in many different forms, acquisition financing is rarely explained in terms of the value it brings to the acquirer.

Acquisition financing underwriting usually focuses on business and financial issues that underpin the stability of cash flow. Providers of acquisition financing usually validate the durability of a company’s competitive advantage and the depth of its resource base. Environmental issues are usually not a major part of the analysis in today’s service and technology-based economy.

How to Expand Your Business Globally