Even in these cases, the home office should have oversight and policy-setting responsibility. For small portfolios and start-up situations, it is usually best to stick to a centralized investment management structure or outsource. However the cost of outside managers to oversee small portfolios in multiple countries can be prohibitive. The rigorous approach to evaluating the portfolio of a potential acquisition needs to be maintained during the on-going management phase. Controls should be put in place to quickly identify potential irregularities.
All acquisitions require diligence.
A significant difference between domestic and international acquisitions is the greater amount of time, expertise, and money required before and after acquisition of a foreign company to evaluate and monitor the investment portfolio. However, it is essential to make these commitments to insure that a company is acquired at a reasonable level and maintained adequately. Questions or comments, please Contact Us.