1. Rationalization of Your International Business and Best Practices for Growth and Expansion

2. Introductions and Agenda What is rationalization? What makes sense for my company? Should I consider a Joint Venture? Your options and Modeling What are the best practices for growth and expansion? What phase should my business be in in order to expand? How do I establish, develop, and retain key role personnel overseas? How can I avoid costly mistakes? 1

3. What is rationalization? Data driven Based on strategy What is a win? Steps you night have to take within your organization: –Business structure –Management structure 2

4. What makes sense for my company? How do I know what markets are best for my company? How do I get started? How do I find reliable contacts in a foreign country? What is the best structure for my business? What are the tax implications to the company and employees? How do I take full advantage of exchange rates? 3

5. Should I consider a Joint Venture? Consider? Yes. Assume is only option? No. Clients usually think JV is the way in: –May get contacted by someone –You think it is how you need to enter a new market. Analyze how much it takes to do it on your own and compare to JV and other options => Modeling. 4

6. Your options and Modeling The spectrum: Modeling: understanding the economy, the clients, and your costs in other locations. Doing NOTHING is an option. 5 Sourcing Distribution Agreement Acquisition Joint VentureGreen Field

7. What are the best practices for growth and expansion? RATIONALIZATION: data driven decisions. Avoid common pitfalls. What are the most common mistakes/pitfalls? –Lack of aligned economic interest. –Overcommitting –Short term focus with high return expectations. –Overly concerned with domestic market. –Trust everyone, but make sure you are always cutting the cards. –You need to be from Missouri. The “Show me State” 6

8. What phase should my business be in in order to expand? Stable Management: –Sufficient –Talent –Depth Is it dangerous to grow too quickly? 7

9. How do I establish, develop, and retain key role personnel overseas? You have to use psychological profiling for identifying and accessing talent. Incentives: financial and non- financial. Culture: awards and organizational charts. Training: programs and sponsorship. Make sure they feel part of the team. 8

10. How can I avoid costly mistakes? Cross functional approach: not driven by sales alone. Understand client values in different markets => Structure business accordingly. Get the right people to help you: –independent; –fiduciary duty to you only 9

11. How can I avoid costly mistakes? Making mistakes is ok if you learn from them… 10

12. How can I avoid costly mistakes? …Leaning from others’ mistakes generates income. 11

13. Thank You Xie Gracias Obrigado Danke Schön Merci Grazie 12

14. Gabriela Rodil Associate – Plante & Moran Global Services gabriela.rodil@plantemoran.com P: 312-602-3508 Lou Longo Partner – Plante & Moran Global Services lou.longo@plantemoran.com P: 312-602-3676 13