Strategic Growth
Why Expand Inorganically?
Entering or expanding into the competitive and dynamic U.S. market through an acquisition of or a partnership with a targeted U.S. business provides key advantages to non-U.S. multinationals, including:
- Immediate scale
- Established competitive positioning
- Built-in market recognition with options to maintain existing branding or to co-brand
- Developed client and ecosystem relationships
- Established operating model in and for the U.S.
- Low integration risk provided the U.S. target can retain relative autonomy from non-U.S. operations as a subsidiary post-transaction.
The Alternative Organic Build Carries Inherent Risks
The alternative – the organic build – carries significant execution risk if the non-U.S. multinational pursues a de novo start-up / build-up to compete with established U.S. players, all the while learning how to operate in the U.S. The organic build typically requires:
- Many years
- Funding of recurring operating losses through the P&L
- Competing head-on with and winning clients through RFPs from established U.S. incumbents
- Learning, building and maintaining a U.S.-specific business culture
- Finding, hiring, managing and retaining effective senior U.S. business leaders