by: Grow VC Group
Download PDF
image_pdfimage_print

By Kati Suominen, TradeUp Founder and CEO

At TradeUp (a Grow VC Group company), our investment thesis is built on the consistent research finding that globalizing companies outperform the broader market. Now Boston Consulting Group (BCG) has produced evidence that private equity funds with portfolio companies with increasingly popular buy-and-build strategies (in which a PE firm buys a company and then build on this platform through add-on acquisitions) with cross-border acquisitions outperform buy-and-build strategies that are purely domestic and strategies that do not include buy-and-build.

BCG reports that in a sample of 121 companies, international acquisitions generated an average IRR of 38.2%, compared with 27.3% for domestic acquisitions and 23.1% for standalones. The international expansion of a formerly domestic company is hypothesized to unlock opportunities for cross-selling, generate larger scale economies, and catalyze further expansions, especially if the business improvements raise investors’ expectations of results that have yet to be reflected in financial performance.

Our take: not only do globalizing companies outperform purely domestic companies; cross-border transactions outperform domestic transactions. Leveraging the global marketplace for business growth works.

Read more about globalizing companies and their finance at TradeUp Blog.

Cross-border deals


Learn More About Grow VC Group Companies

Crowd Valley, Startup Commons, Kapipal, Grow Advisors, TradeUp Fund, Deal Index, Crowdcitee, p2p Safety, Crowd Index Fund, Commoditarian

Join Our Team

We are always looking for talented, entrepreneurial and driven doers to join our growing global group of companies in various positions and locations around the world. If you think you have what it takes, apply now!


Other posts you may enjoy

About the author

Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

Tags: , , , , ,

This entry was posted on Friday, April 22nd, 2016 at 2:08 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.