The Organization For International Investment

FDI's $400 Billion Secret Ingredient

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Page 9 of 19

10 FDI's $400 Billion Secret Ingredient Why Economic Developers should Care About Cross-border M&A An M&A event can sometimes create a challenge for economic de- velopers, unlike greenfield and brownfield investments, which bring vis- ibility and recognition. Successful economic developers recognize that M&A transactions can lead to positive outcomes for the region. The very nature of the cross-border M&A is that the most resilient and top-performing companies are investing in the community. Global companies that emerge as leaders in their home markets often seek to acquire an established company as a way to enter an unfamiliar market. These proven companies often bring industry-leading stan- dards and best practices. They often create global distribution chan- nels, attract new customers and invest a wealth of capital – laying the groundwork for future growth and success. Did you know economic developers can plan for cross-border M&A? Consider a global employer that purchases a U.S. company with facil- ities throughout the country, including one in your community. Savvy EDOs like yours will engage the new company executives to make sure they are welcomed and fully informed of the benefits your community provides to global firms. An EDO that develops a strategy for M&A activity can transform a potentially challenging situation into one with a greater likelihood of positive outcomes. EDOs can improve the environment among elected officials, commu- nity leaders and local media long before an M&A transaction is an- nounced. These "beforecare" efforts will position the EDO as a key re- source for potential investors and build a community better prepared to thrive in the 21st century economy. In addition, beforecare reduces the possible political backlash and diminishes the amount of unhelpful rhetoric that could damage your region's brand. See Our "eight Easy Steps" ON PAGEs 14-15.

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