Checklist for International Expansion

AuthorDavid A. Steiger
Pages443-447
Appendix D
Checklist for International
Expansion
443
• Determine Structure of New Operation
• Parent/subsidiary/worldwide structure
•
Agreements maintain operations between arm’s-length parties
• Joint venture with foreign entity
• Agency relationship with foreign entity
• Structure should allow “spin off” of subsidiary or joint venture
• Without need to rewrite or renegotiate company agreements
• Structure of board, ofcers, ability to bind entity, formal limits on
local signature authority, local powers of attorney
•
Expose assets of other entities in only the most limited circumstances
• Capitalization—equity, debt, equipment, solvency over time
•
Keep the corporate formalities of the parent and subsidiary separate
• Each entity should keep its own books and records
•
Loan payments and other intercompany debts should be repaid
within terms
• Requirements under credit facilities
• Use of worldwide and local counsel, accountants
• Keys to Successful International Expansion
• Proactive strategy and business plan
• Management
• Country and competitor research
• Due diligence on potential partners
Steiger_TransBorders_20140625_09-05_FinalPass.indd 443 6/26/14 9:21 AM

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