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Thinking of expanding overseas?

An overseas venture is a great opportunity to capture new markets in order to increase your customer base and successfully grow the business.

One of our technology sector clients, already based in Singapore, has recently been discussing its plans for further expansion. It currently employs twenty people in Singapore and four in London and is looking to take advantage of new business opportunities by expanding and opening a large office in India.

Working with the client’s accountants and other advisers, we have helped the client to understand the economic requirements and other socio-cultural issues that are relevant to the expansion. Importantly, this client has undertaken more than twelve months of research into the area in which it wishes to expand and has taken on a new team based in that location in order to develop an understanding of what is required.

One of the most challenging aspects of the expansion will be maintaining the company ethos while being sensitive to the legislative and cultural differences required of each office. For example, the staff handbook and policies and procedures will not be ‘one size fits all’ and will need to be tailored to the relevant country.

This client has already secured investment in order to expand its business and we have assisted by advising on the terms of the documentation and to ensure that the client expands in accordance with the investment agreements and supporting documents.

We have introduced this client to a number of potential investors (both private equity and high net worth individuals known to invest in this sector) and are working with the client to ensure the group company structure is in a strong position with all shareholders’ agreements, articles of association, loan agreements and leases (to name a few) are in place and finalised.

It is important that your business is prepared to expand. A failed expansion should not be the total demise of the business and it is advisable for you to health check your business to ensure it is in a strong financial position before looking to expand. You should ensure that the expansion is feasible and works alongside the business plan to develop on an already strong business foundation together with the resources and skills to support the process.

CONTACT VANESSA

If you would like more information or advice relating to this article or a Corporate law matter, please do not hesitate to contact Vanessa Crawley on 01727 798104..

© SA LAW 2017

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.