International Investment Transactions
Specialized skills are needed to negotiate and manage transactions involving the international investment of capital. Because international investment transactions involve a myriad of risks and challenges, companies should work closely with experienced international investment transactions lawyers to protect their interests.
Types of International Investment Transactions
There are three basic types of International investment transactions: setting up foreign subsidiaries and branches, international mergers and acquisitions, and international joint ventures.
Setting up a foreign subsidiary or branch allows a company to establish tangible presence in a foreign market. This structure is significantly controlled by foreign laws while still being subject to many US laws related to trade and financial dealings. A subsidiary is a new legal entity, such as a corporation or LLC, either under US law or under the law of the foreign jurisdiction. In contrast, a branch is merely a new location of the US company, and thus any obligations or liabilities of the branch can directly impact the home company. Because of the significant influence of foreign laws, coordinating with local counsel in the foreign country is required to set up and operate a foreign subsidiary or branch.
International mergers and acquisitions allow a company to leverage the goodwill and relationships of an existing foreign enterprise to create an instant presence in a foreign market. Although International mergers and acquisitions dramatically decrease the time it takes for a company to begin operating in the foreign market, the cost of an international merger and acquisition can be significant. Moreover, in international mergers and acquisitions, the acquiring company is buying more than just equipment and brands; they are also inheriting a management and operations philosophy that might not be compatible with its own culture - or US law.
As companies look to expand their reach globally to enter new markets or find savings, a common strategy is to find a local partner in another country and form an international joint venture. When done well, international joint ventures can dramatically shorten the timeline and expense in developing an international market or supplier base. However, if not correctly executed, an international joint venture can be an expensive misadventure that can potentially damage the home company’s operations and brand.
International Investment Agreements
Regardless of the type of international investment involved, international investment agreements must be carefully negotiated to clearly establish each party’s rights and obligations.
Although every international investment agreement is unique, our international business transaction attorneys have been involved in hundreds of international investment agreements and leverage our experience to protect our clients.
Our International Investment Experience
We offer an efficient, practical, and results-oriented approach to international investment transactions, including:
International joint venture agreements
Management of foreign counsel in forming international subsidiaries
Forming US entities on behalf of foreign clients
Negotiating international business transaction agreements
Advising clients on international mergers
Advising clients on international acquisitions and sales
International technology transfer agreements
Implementing US-compliant management and operational controls over newly acquired foreign businesses
Additional Insights Regarding International Investment
International Business Transactions Services