Structural and delegation

Context

Adverse market access conditions make minority ownership of a foreign company an option for obtaining attractive returns while the company gradually becomes familiar with the target industry and market. Tax provisions, laws protecting property rights and the treatment of foreign investors are favourable. The firm does not have the resources to be in control of a foreign operation, but seeks to gain experience to be able to play a stronger role in the future.

Suggested penetration strategy:

• Minority ownership in a foreign company