The Organization For International Investment

FDI's $400 Billion Secret Ingredient

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FDI Frontlines Coalition | 19 What to Do When M&A Opportunity Arises Nearly 40 percent of all FDI firms have fewer than 100 U.S. workers, and 82 percent of FDI firms have fewer than 1,000 U.S. workers, according to the latest government data from the Bureau of Economic Analysis. With that in mind, these potential investors – particularly smaller firms – may contact you about investing in the region by purchasing a local company. This conversation is your first opportunity to welcome what could be a future community employer. While this moment may be unexpected, prepared EDOs can immediately become a trusted resource. Here is some practical advice for preparing for this opportunity: First impressions and initial contacts matter It is important for you to convey to the investor that you appreciate their consider- ation and want to be helpful in finding ways for them to succeed and grow in the re- gion. Treat all information as confidential. Use this initial conversation to gather informa- tion about the company's business interests in the region. Key questions to ask include: • Why does the company want to enter the market? • What type of company/industry is it looking to acquire and why (i.e. market entry, growth, sales, intellectual property, workforce talent, business diversification)? • What is the company's business plan after entering the region? • What are the company's short- and long-term plans for the company involved in the trans- action (i.e. future investment, job creation, U.S. or regional headquarters function, or work- force consolidation or restructuring)? • What local infrastructure, workforce and policy needs are most important? • Who are the best company contacts going forward? Offer introductions to local service providers Make sure investors know how to access local service providers, including specialized ac- countants, lawyers or other practitioners with expertise in cross-border M&A. Offer to make introductions, which shows your value to potential investors. Offer assistance in navigating the public relations landscape Highlight your expertise in navigating the region's public relations landscape and offer intro- ductions to key stakeholders before or after the transaction goes public. LAY OUT a media strategy Offer different ways to support media outreach efforts of an announced transaction. For in- stance, be prepared to use earned and social media to help amplify the key messages of your region's global investment brand. Offer to highlight the economic development ratio- nale of the transaction and known positive impacts. Discuss how the community is excited to welcome this new company. You can also use this as an opportunity to suggest that the company articulate its commitment to the community. be prepared for M&A

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