Value Creation Summit 2022: “Timing is key to getting internationalisation right”

Private equity backers and management teams must be conscious of timing when implementing an internationalisation strategy, according to speakers at the Real Deals Value Creation Summit

Speaking at Real DealsValue Creation Summit on 28 June, PE investors noted that “timing is key to getting internationalisation right.”

Puma Private Equity’s Rupert West noted: “The only regrets we’ve had [when internationalising businesses] has been implementing the strategy too quickly. You have got to break businesses out of the idea that internationalisation is just about a land grab, it is more about doing it at the right time to drive value.”

Contrastingly, Ambienta’s Giancarlo Beraudo explained that “while the timing of internationalising businesses can be tricky, we often find it is beneficial to either start early or do a step change of fuelling internationalisation with M&A.”

The speakers agreed that there are a number of factors to consider when internationalising a business. These include a focus on culture, leadership alignment and integration. “The value creation team needs to be able to work closely with acquired businesses and their management teams; support the integration and have the right management leader in place to lead the wider group,” one panellist said.

In regards to how GPs are successfully navigating internationalisation strategies, the panellists agreed that it also helps to have contacts on the ground and business professionals in chosen geographies that can assist with the development and extension of the business.

Reporting by Talya Misiri