Dear all,
I kindly ask your feedback on my approach for the structure?
Thanks.
Prompt: "A leading Brazilian highway concessions company is looking to expand internationally Economic growth in Brazil has stalled, and in order to continue to grow both top line revenues and bottom line profitability, the client wants to diversify its portfolio and decrease its exposure to the Brazilian economy What factors should the client consider as it thinks through its international expansion options?"
Approach:
1. Country Shortlisting
-Countries available
-Competition
-Ways to enter (greenfield, acquisition, JV)
2. Financial Assessment
-Rev/cost projections for each alternative (pipeline overview)
-Upfront investment cost or acquisition cost
-Payback period or any other return metrics to justify numbers
3. Internal Considerations
-Operational impact on our current operations
-Capability assessment (previous M&A or foreign country experience)
-Affordability (do we have enough capital for this)
4. Risks
-Regulation
-Political risk
-Cultural fit
-Perception over foreign companies