EXPANDING INTO U.S. MARKETS

At present, in the United States, many companies are shrinking or disappearing , along with their markets. How therefore, can a thriving company abroad (or even in the U.S.), hold onto, or even expand into, these markets? One answer is to purchase, or merge with, U.S. companies that already have developed client bases, and recognizable labels/products.

Why would these companies be interested? Because many do not have sufficient cash, or credit, to purchase all the goods they can sell. That is a problem in the U.S., and that will only become more of a problem over the short term, at least.

My proposed solution has 2 stages- 1st- buy or merge with 1 or more smaller companies. At the size of approximately $4-$10,000,000.00/year gross sales, bringing several such companies together can produce real business efficiencies with reorganization. However, you can create the same benefits with smaller companies, on a smaller scale. Why more than one? - it would give you more than one saleable label/product, more than one different client base, and would expand your market possibilities in a safe way.

Plus, your company could be sole supplier to all of your larger new company. By merging, the U.S. companies can solve their biggest problem- easy flow of goods to their clients, and better cash flow, and your company would lock in and guarantee a large customer base for your products here.

This would be permanent protection for you, since you would control all the companies. This would also act to guarantee payment to you, for the same reason. And, depending upon how much of the larger company you wished to give up, you could purchase and/or merge, using stock; not just cash.

The end result is a company you own- with different labels/products, different client bases, a U.S. organization that already knows how to sell in the U.S., guaranteed payment (you control it) and a guaranteed purchaser base (your own company!) of millions a year, that you control as long as you wish. This is only the 1st part, but you could stop here.

As to stage 2, your new merged company can go public (i.e.- be on one of the U.S. stock exchanges) by a process called “reverse merger.” Its approximate total cost (including all accounting and legal fees) would be $200-$300,000.00, and would guarantee being public (but it must be done carefully).
This method is different from doing it through an underwriter, which costs up to 10 times more, and then still, isn’t even guaranteed.

Why do this? If your larger company is successful, it makes future funding much easier, and cheaper, lets you acquire even more companies, more easily, and if a market can be found for your company, the value of your new larger company can quickly increase even to up to double and triple its value.

All the above can be completed in approximately 6 months, at its most efficient.

Why do it now- because there are more companies looking to do this, then there are U.S. companies waiting for merger or acquisition. And by waiting, your competitors may lock up the best U.S. companies, at the best prices, lock in their client bases, and leave you with nowhere to go, and little to sell to. Due to the U.S. recession, this is the best time to approach most U.S. companies, with their still existing markets.

Money is harder to come by now, and their need for you right now, is at its greatest. The long term opportunities are great, for any company able to now expand into the U.S. markets. This article provides you with just one aggressive strategy for doing so.

- Back to Aritcles & Information Menu