Spring 2015 issue of Horizons

The RubinBrown International Business Summit gathered hundreds of executives and international leaders together in St. Louis to discuss issues related to the global marketplace and ways to expand operations overseas. The summit was sponsored by the RubinBrown Manufacturing & Distribution Services Group and featured presentations by five of our Baker Tilly International partner firms, as well as a keynote address from Steve Burrows, former CEO of Anheuser-Busch International. International expansion can be a winning strategy to grow and diversify sales in both good and bad U.S. economic conditions. Depending on your product, the international markets can be a way to reduce manufacturing costs and open new distribution channels. However, the risks of international expansion are often hard to identify and quantify from our vantage point in the U.S. An international move, even into neighboring countries Canada and Mexico, can drain cash and management resources resulting in dramatically lower profits and cash flow. Expansion into other continents presents varying degrees of risk that should be considered with experts in each of those countries. The International Business Summit provided attendees a “local” look into both the opportunities and risks of doing business in Brazil, China, Germany, Ireland and Mexico. Leaders from each of our Baker Tilly affiliates in these countries presented their first-hand views on how to do business locally. The leaders presenting were:

Stone Yan, Baker Tilly China, Director of International Business Service

Ricardo Julio Rodil, Baker Tilly Brazil, Partner

Dr. Claus-Michael Allmendinger, Baker Tilly Germany, Partner

John Glennon, Baker Tilly Ireland, Managing Partner

Manuel Aguilar, Baker Tilly Mexico, Partner

Several common themes were evident in each presentation:

∙ Each country is interested in more investment from U.S. companies. Your investment could be a manufacturing facility, sales office or simply selling products through an existing distribution channel. In return, each country may offer varying incentives to begin or expand your business operations. ∙ You must understand the local culture. U.S. businesses must understand how to do business within each country’s regulatory framework. Just as important, you must understand how to work with the local employees.

∙ The tax structures worldwide are just as complicated as they are in the U.S. Prior to expansion, tax considerations must be understood and built into financial projections.

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