Going Global

Ready to Go Global?

In today’s world of global commerce, many mid-sized companies are considering expanding internationally to grow their businesses and capture additional revenue opportunities outside of the United States.

Charting this course is not always easy. Asking the right questions in advance – and having the right financial partner – is critical in understanding this broad global landscape.

Foreign markets, especially developing markets in Asia and South America, present tempting opportunities to expand your company’s reach and grow your business operations. So it is not surprising that many mid-sized companies cite international expansion as a critical component of their overall growth strategy

Tactically, it is essential to have a well-researched rationale, formally defined goals and a clear idea of what successful outcomes look like, before you expand internationally.

Important Questions to Consider Include:

No Two Markets Are Alike

Going Global

Advice is Not a Commodity: Engaging the Right Partners and Advisors Early in the Process is Critical to Your Success

Operating overseas is very different from running a domestic business. Companies should ensure that their Boards of Directors have international experience and access to the knowledge and skills that will enable them to make informed decisions.

The financial, legal, tax and accounting decisions you make when expanding internationally are often a principal determinant of whether the venture will be a success. Strong partners, including banks, law firms, tax advisors and accountants are invaluable allies to you throughout this process. There is a strong case for engaging with partners even before potential target markets have been identified, in order to tap their knowledge and establish whether there are potential hurdles to operating in various geographies.

The right partners will not necessarily be those that you have worked with in the U.S. The law firm that has served you well domestically may not understand the legal landscape to facilitate your expansion in China, for example. Similarly, many accountancy firms are domestic-focused and will have little international experience. Where necessary, Citi can introduce you to a wide variety of local subject matter experts.

Your banking partner is especially important when going global as they will provide an ongoing service to your new operation. If you intend to work with your U.S. bank, they should have a presence in your target country. You should also find out whether they offer a sufficiently broad range of products and services, including local products, to meet all of your needs in that country. Working with your U.S. bank for some services but with a local bank for local payments, for example, could create unnecessary complexity.

It is also important to ensure these partners are engaged collaboratively, as each is a subject matter expert for its own domain. Their collective knowledge, a result of sitting around the table and aligning on key considerations and resulting implications, will be advantageous as you formulate and finalize your overall strategy. As a result, you are more likely to create a coherent growth strategy that can be implemented smoothly.

The Power of Citi

Citi Commercial Bank has been helping businesses like yours expand internationally for over a century. We have an on-the-ground presence in 25 markets in North America, Latin America, EMEA and Asia-Pacific; Citi has a presence in a further 19 markets with the capacity to serve Commercial Bank clients. We offer a broad suite of local and global financial services, including operating accounts, payments and collections capabilities, and local lending. Working with Citi means you have access to familiar products and support – unlike if you work with a local bank.

Our expertise in these markets goes well beyond understanding local economic, regulatory and financial conditions: we have worked with many other clients that have expanded their footprint. Using our global network, we can easily scale our banking offer to match your growth plans. Our network of professionals is ready to help you achieve your strategic goals.