Spring 2015 issue of Horizons

Baker Tilly International CEO and President, Geoff Barnes discusses how businesses can benefit from expanding overseas and the value of working with members of the Baker Tilly International network.

Helping Businesses Go Global Up until a few years ago, there was a perception that if you were an owner-

as unforeseen commercial difficulties at their new location.

managed business or SME (small to medium enterprise), the international scene wasn’t something you needed to worry about. How times have changed. Accelerated globalization and rapid technological advancements paradoxically are making the world a smaller place, while creating a massive global marketplace. With an uncertain macro-economic environment persisting in many markets, and the medium-term outlook unlikely to change, businesses of all sizes are being forced to look further for growth opportunities; in many cases, just to survive, let alone thrive. In this climate of uncertainty, one fact is clear— staying at home is not an option. Challenges Facing Businesses While many businesses hope that expanding abroad will generate profits and positive cash flow, they may be surprised at the quantum and complexity of some of the costs, as well

The decision to embark on international expansion integrates a whole range of business, fiscal, legal, cultural, emotional and other issues. These issues can be extremely complex and can significantly impact the success and profitability of an investment. From a business perspective, entry into overseas markets presents challenges that may include changes to key manufacturing processes, identification of new distribution channels, or accessing new sources of funding. Other challenges include understanding the local business culture and economic conditions, getting to grips with local regulations and laws, and dealing with exchange rate fluctuations. In essence, two opposing forces are at work: the drive to grow and expand beyond traditional markets versus an inherent desire to minimize risk and protect the business legacy.

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