Go global: positioning your family business expansion across borders Key considerations for accelerating your growth 1
Stay true to your vision When looking to grow your family business, it s just as important to know who you are and where you came from as it is to know where you re going. Your culture and your values as a company, the ability to attract and retain top talent because of your culture, your ability to listen and respond to customer needs and your strong governance structure have made your company the success that it is. These strengths are even more crucial if you decide to explore expansion into new market frontiers. Success means adopting leading practices while remaining true to yourself.
Family business owners who ve already taken the leap into emerging markets are succeeding by combining two essential elements: A family culture that has grown the business to where it is today Leading management practices that have fuelled the rise of multinational corporations Growth opportunities require due diligence. The journey to expansion and profitable growth isn t a quick process. It requires careful planning and research into how different provincial or state regulations, tax implications or subtle cultural differences could affect your strategic goals for sustained, profitable growth. For family companies about to chart a new path to global expansion, we offer practical considerations that can help you position your business for success. 1
Know your long-term objectives. Family companies seeking to expand need to be thinking long term. This will enable you to develop a strategy that offers a steady, prudent plan for growth that balances opportunity with risk, and accounts for both calm seas and sudden storms. Understand your market and reach. Global markets are increasingly competitive and highly complex, and consumer preferences can be unpredictable. To grab market share in this demanding environment, you may need to extend your market reach. Strategies can include broadening product or service offerings, investing in R&D and finding new markets for existing assets. 2
Have a digital strategy. As a family business, your ability to quickly and nimbly adapt to changing conditions places you at a distinct advantage. Expanding globally requires a technological platform that meets your customers needs and can facilitate easy communication between all your locations and management teams. To survive and thrive, you need to be informed of changing technology in your industry and act quickly to adapt to lessen digital disruption to your business. Being proactive in adopting digital solutions that can advance the business can yield great rewards. 3
Today s consumers are knowledgeable and engaged with their purchases. They resist segmentation, can be less loyal than previous generations and often rely on who they know to tell them about the best product rather than the company itself. Understanding your customers, what they want and why they ll buy from you is essential to long-term growth. As a family business you have a distinct advantage the family face. Smaller, local companies can reach customers on a more personal level than their larger corporate counterparts. Your growth strategy should make the most of this advantage. 4
Back office integration. Operational efficiency is vital. Reorganizing and integrating back office support functions by standardizing and automating processes can deliver operational cost savings that you can reallocate to growth initiatives. Being able to pivot is an advantage. Sustained success requires innovation. As customer needs change, so too should your product or service offerings. Without shareholders and regulators to slow you down, you can remain nimble in a constantly evolving landscape. Strategic acquisitions offer another means to enhance speed to market. We can help To learn more about how EY s Private Client Services practice can help your family business achieve profitable growth and sustain it contact us at privatecompanyinfo@ca.ey.com. Visit us at ey.com/ca/private. 5
EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. 2017 Ernst & Young LLP. All Rights Reserved. A member firm of Ernst & Young Global Limited. 2344354 ED 0917 This publication contains information in summary form, current as of the date of publication, and is intended for general guidance only. It should not be regarded as comprehensive or a substitute for professional advice. Before taking any particular course of action, contact Ernst & Young or another professional advisor to discuss these matters in the context of your particular circumstances. We accept no responsibility for any loss or damage occasioned by your reliance on information contained in this publication. ey.com/ca/private