How to Think About Expanding Globally

The emerging growth and middle market companies our firm serves are typically U.S. companies that initially see their opportunity in domestic markets and customers. As they prove themselves and grow, many come to see compelling opportunities in global markets—but they also see risks in trying to penetrate markets abroad and aren’t sure what approach to take.

We asked some of our partners about situations they’ve seen in which companies miss out on opportunities for international expansion. What holds these companies back? Their responses are below.

Kim Denney

Kim Denney is an experienced Houston area leader with a record of solving top-level problems as an executive with broad responsibilities in the Chemical, Petrochemical, Energy, and Manufacturing industries.

“We're all naturally hesitant to step out into unknown territory. We often don't know where to find advice or have no basis to evaluate and trust the advice we're given. These decisions to go global can be fraught with risk—market, execution, and geopolitical risk. The key is building a trusting relationship with advisors who have first hand, applicable experience in the countries you are thinking of expanding into and can help you understand and minimize the risks involved.”

Ron Frump

Ron is a Newport partner in West Florida who has a diverse background as a CEO and senior executive in the consumer packaged goods industry, especially food, with public and private companies.

“The hold back is the lack of understanding and the anticipated complexities of international business relationships. Companies must understand all the ramifications—business, legal, regulatory, tax etc.—of having a whole new set of partners in a country they don’t know well.”

Art Medici

Art Medici has a diverse background as an executive leader in e-commerce, high tech, telecom and information companies. His experience spans startups, high growth small/mid cap firms and global leaders like Thomson Reuters.

“Factors that hold companies back: lack of adequate financial resources to fund the ramp up; inexperience in international business; investors who get nervous at the idea of venturing into markets abroad that are harder to understand and monitor.”

Billie Otto

Billie is a Newport partner in the Pacific Northwest who has been Executive VP and CIO of TrueBlue Inc. (NYSE: TBI) the largest industrial staffing firm in the U.S.

“Typically while CEOs have great confidence in their product and local teams, they lack confidence in their ability to scale globally due mainly to lack of connections and insights into the target international market. They need to get a comfort level with that market.”

Ted Parrish

Ted Parrish is a Newport partner in Dallas. His background in advisory services includes solving strategic and operating problems for banks, financial service companies, manufacturers, distributors, retailers and transportation companies.

“Uncertainty is holding them back. With volatility in the financial markets and especially in China, mid sized businesses are looking for ways to be successful in nearby markets and supply chains--where they feel they can exercise some control.” 

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