72% of companies set to increase overseas operations by 2024 Increased management complexities seen as the main barrier to growth for established multinationals already abroad 60% of respondents believe legal and tax complexities are a barrier to growth Companies remain enthusiastic about consolidating their existing operations abroad and expanding into new jurisdictions, according to our new research.
We surveyed a global sample of 100 companies ranging from start-ups to mature multinationals about their expansion plans.
According to the findings, nearly one quarter (26%) of respondents cite the access to a local sales market as a key pull to new geographical markets, with a fifth (21%) listing access to a talented workforce.
However, for established multinationals that have already expanded into multiple markets, there are several key challenges they must face when considering setting up ventures in different countries. Over half (60%) of respondents said that legal and tax complexities are a barrier to growth, with over four in ten (42%) citing the challenge of executing a successful M&A strategy.
A third (33%) of respondents cited the difficulties of relocating existing operations to new geographic markets as another obstacle. The key challenge was viewed as increased management complexities, with 65% agreeing it would render the growth of existing operations difficult.
Evert Wind, Global Head of Corporate Client services says:
"There are untapped opportunities in many regions, with many business leaders having to weigh...