For many years Silicon Valley has been the center of the universe for technology companies worldwide, attracting overseas talent and capital, and providing a model for innovation and growth. At the same time, large Silicon Valley tech companies have profited enormously by looking outside their home base and spreading their operations and products across the globe.

The same can't always be said for Middle Market companies, which have been slower in waking up to opportunities abroad. Speaking at an event sponsored by Womble Carlyle earlier this year, National Center for the Middle Market Executive Director Tom Stewart noted that Middle Market companies have been slow to embrace international opportunities. Only one-third of U.S. Middle Market companies (defined as having annual revenues of $10 million to $1 billion) have global operations, Stewart said.

We believe Middle Market companies will increasingly take more aggressive measures to adopt international opportunities because of the many benefits of global expansion which include:

  • Strengthening Core Competencies through exposing employees to new ideas and best practices;
  • Improving Competitiveness by battling international competitors on their home turf;
  • Increasing Customer Service by meeting global customers where they are;
  • Providing More Strategic Opportunities via a broader contact base; and
  • Diversifying a Company's Markets, thus limiting its exposure if the U.S. economy takes a downturn.

Our firm's Global Business group recently created a video, Global Growth: The Middle Market is Poised to Take Advantage, that highlights the opportunities for Middle Market companies as overseas markets grow.

In my many years of assisting with cross-border transactions, as well as representing overseas companies in establishing operations and taking advantage of markets in the U.S, I realize an overseas expansion or expansion into the U.S. market raises many issues, including compliance, legal matters, talent, and business models, among others. The only choice that's never correct when considering these matters is to follow a spontaneous approach without getting the proper assistance.

Womble Carlyle is devoted to helping clients solve legal challenges and meet business goals anywhere they operate. Helping clients succeed in international transactions and disputes is a core component of our service to clients.

Hope you all had a great Thanksgiving. Back at you next month.

Best, Steve

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