Design India (D-India) is an Indian Engineering Design firm providing end-to-end solutions for the building design industry. With a state-of-the art studio in India, D-India is engaged in providing Computer Aided Design (CAD) and Building Information Modeling (BIM) services to international architecture and engineering firms in India. After establishing successful operations in India, D-India's senior management saw it profitable to enter the U.S. markets to serve U.S. clients.
Choosing An Appropriate Market Entry Strategy – The Considerations
When D-India approached Start Business In America seeking support to realize their goals of entering the U.S. market, our experts thoroughly analyzed their situation and needs. While eager about the lucrative opportunities that the U.S. market provided, D-India was particularly anxious about safeguarding its interests against any startup risks. They wanted to start operations at the earliest and preferred to enter the market with a client list ready to go.
After analyzing D-India's need and requirements, our experts suggested that D-India use acquisition of another company as an appropriate market entry strategy. Acquiring an entity already in operation in the U.S. would enable D-India to start its operations from day one and serve the already existing clients of the U.S. company being acquired almost immediately. An existing company would present D-India with a platform to launch their services into the U.S. market using the infrastructure, network and contacts already built-up by the existing U.S. company.
Acquiring A U.S. company – The Challenges
While acquisition of an existing company was identified as the most suitable market entry strategy for D-India, the process of acquiring a U.S. company is never simple or easy. The business acquisition process involves consideration of numerous parameters – from identification of the right company, to correct valuation, tax implications, and finally, appropriate documentation to safeguard oneself from undiscovered liabilities and undesirable consequences.
Acquiring An U.S. Company – The Implementation
To help D-India accomplish its objectives of acquiring a suitable U.S. entity and profitably enter the U.S. market, our experts supported D-India diligently through every stage of the acquisition process. Our experts helped D-India identify a suitable business for acquisition in the U.S. and aided D-India in conducting proper due-diligence to carefully evaluate the company. Our experts also advised the company during the negotiations process to arrive at a mutually beneficial arrangement and supported D-India with all the necessary formalities to complete the transaction successfully. Thus, our experts ensured that D-India was thoroughly supported during the entire process of business acquisition.
Off-Shore Business In India Driven By The U.S. Company
A key advantage that D-India witnessed following the business acquisition was in the flow of off-shore business to the company in India, primarily driven by the clients and business of the U.S. company. Following the acquisition, D-India had access to established U.S.-based clientele and a significant order-book, enabling it to outsource much of the work to its off-shore center in India. Having an off-shore team in India develop a bulk of the work resulted in significant savings for D-India allowing it to maintain a competitive advantage in pricing by passing on part of the benefit to its clients, ensuring success and profitability of both the Indian and the U.S. operations.
Sending An Employee From India on H-1B To Coordinate The U.S. Operations
Following the successful acquisition of the identified U.S. company, D-India needed to send one of its project managers in India to the U.S. to oversee client engagements, serve as the primary liaison between the Indian company and U.S. clients, to keep management abreast of the status of projects and to ensure compliance with design schedules. Our experienced attorneys decided that the H-1B visa would be the best option. The L-1 visa was ruled out because the project manager who was chosen by D-India had not been with the company for the requisite year. Our attorneys successfully helped the U.S. company prepare and file an H-1B petition to bring the identified project manager to the U.S. enabling him to immediately begin reaching D-India's goals.
Thus, Start Business In America successfully helped an Indian Engineering Design company profitably enter the U.S. markets through the acquisition of another company by assisting it through the entire process of business acquisition and subsequently ensuring that desired employees from India were able to travel to the U.S. to manage and coordinate its operations in the U.S.
If you are considering setting up operations in the U.S. or acquire an existing U.S. company, contact Start Business In America for a FREE Assessment. We'll review your specific situation and develop the best strategy based on our experts previous successful experiences.