May 27, 2020  
 
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Buying a Business in the USA

 

Benefits for Foreign Buyers of United States Companies

There's a reason why more and more foreign companies are investing in U.S. firms. For companies located outside the U.S., there are a number of important to benefit associated with buying a company in the U.S.

Buying American is an increasingly popular choice for international entrepreneurs on the prowl for new business opportunities.
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Although American companies briefly lost their luster during the global recession, purchases of U.S. firms have rebounded as foreign companies hunt for acquisition targets that can deliver a healthy ROI and advance their business objectives.

The reason U.S. companies are appealing purchases for global entrepreneurs is that American businesses offer some unique advantages and benefits compared to other companies around the world. If you have ever thought about buying an American company, there are a lot of reasons why you should make it a priority.

  • Access to American consumers. Is it necessary to buy a business to gain access to American consumers? Technically, no . . . but it helps. International companies that export products to the U.S. face some significant hurdles. In addition to coping with trade barriers and regulations, you would need to find someone to receive your product once it arrives in the U.S., and then someone else who would be willing to distribute it to stores. By purchasing an American company outright, you can potentially eliminate several steps in the chain and keep their cut of the profits for yourself.
  • Global status. In global trade circles, there is a certain prestige that comes with owning an American company as part of an international business portfolio. The status of an American business holding isn't based on cultural or nationalistic elitism, but on the fact that the U.S. continues to be an economic powerhouse that serves as a center of commerce for many sectors of the global economy. In some industries, an American subsidiary isn't just a good idea it's a necessity.
  • Access to technology & talent. America is known for its ability to supply the global economy with talented leaders and cutting edge technologies. As an international business owner, you can have a hard time attracting talent and transplanting technologies overseas. When you buy an American business, you bring your company to the talent and technology rather than waiting for them to come to you.
  • Global growth potential. The U.S. is an incubator for emerging global consumer trends. If it's flying off the shelves in the U.S., it's only a matter of time before a version of it reaches store shelves in London, Tokyo, and Johannesburg. With a little luck and a lot of hard work, you can focus your acquisition search on U.S. companies that are poised to explode in the global marketplace.

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Is Buying An American Company Right for You?


Conversation Board

What other advantages are there to buying a company in the United States? We welcome your comments, questions and tips regarding the benefits of non-U.S. companies purchasing U.S. companies.


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