Why Go Multinational?
Why Go Multinational? By William Cate
If we were chatting in an elevator and you should ask me why your national company should evolve into a multinational corporation, here would be my two minute reply:
1. Your multinational corporation can choose the jurisdiction in which it will be taxed. Choosing a low tax jurisdiction increases your after tax profits. 2. Multinational corporations qualify for government grants and low interest loans that can cut their development and expansion costs by 50%-75%. 3. Business loans are more easily secured by multinational corporations than national companies. 4. The Global Village has more consumers than any single country. 5. If you take your multinational corporation public in America, your assets are valued in U.S. Dollars. 6. You can own your company in the form of its shares in US Dollars anywhere in the World. For many companies around the world, the only way to move the company's fixed assets into the Global Village is to take the company public. 7. You can grow your company faster when you use your publicly traded shares and American Dollars to acquire cash-producing assets in your region of the world. This is how Cisco Systems built their fifty Billion U.S. Dollar multinational corporation. You can follow their lead. 8. There are PIPE investors eager to supply your publicly traded multinational corporation with funds to acquire cash-producing assets. 9. Key corporate executives can obtain Canadian or American citizenship without cost. 10. You can leverage your publicly traded shares and ensure your company has a US hundred million dollar in assets within a few years. 11. Your investors and shareholders are more likely to reap a huge profit from their investment if you are a multinational corporation. 12. If you rely on a PIPE financing over an Initial Public Offering, you need not spend a fortune on an investor relations program, 13. A Global Depression is coming. Multinational corporations are far more likely to survive it than their national counterparts. During a Depression, as a multinational corporation, you will be in a position to buy assets for pennies on the dollar, rather than selling your life's work national company for pennies. 14. Regulatory compliance costs can be better managed as a multinational. 15. Employment policy can be based on merit, not government political bias. 16. Publicly traded multinational corporation's value is a multiple of its balance sheet value. This leverage is vital when your multinational company seeks to do a friendly merger with a major international corporation. 17. You can control currency risk by adopting the Pepsi Barter solution.
Our elevator has stopped. It's time for you to return to your office. It's up to you to decide if these advantages justify the time, money and effort that it will take to turn your national company into a multinational corporation. The first person to choose the multinational solution was the founder of the Dutch East India Company. The Company was established on March 20, 1602. They were the first multinational company. Also, they were the first company to issue stock. The multinational corporation movement has been the rage since the end of the Second World War. It's the trend of the 21st Century. Isn't it time that your company joined the Multinational Corporation Bandwagon?
About the author: He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinves tmentclubwelcome/] You can email Mr. Cate at: Beowulfinvestments@Earthlink.net