Andrea Fantozzi of Prager Metis and Lorenzo Moretti of Value Services held a LinkedIn Live session on May 17th. They discussed why international expansion is important for Italian companies to grow exponentially and the role that Prager Metis and Value Services play in that. Click here to view the recorded live session (please note it is in Italian). Please see below for the English transcript. If you have any questions, please feel free to reach out to Andrea today.
LINKED IN LIVE EVENT SUMMARY – ANDREA FANTOZZI + VALUE SERVICES
On the 17th of May, an exciting and productive LinkedIn Live event took place between the Italian Global Services Team of Prager Metis CPAs and Values Services. The purpose of the event was to explore the challenges and opportunities associated with entering foreign markets, with a specific focus on the lucrative US market.
Andrea Fantozzi, a Partner at Prager Metis, kicked off the discussion by highlighting the sectors that are of particular interest to the US market. These sectors include consumer goods, information technology and telecommunications (ICT), chemicals and pharmaceuticals, life sciences, automotive, and mechanics. Andrea emphasized that one of the major tax advantages in the US is the ability to “deduct” up to 80% of subsidiary expenses.
Lorenzo Moretti, the Head Office Manager at Values Services, provided detailed insights into the funding opportunities available to Italian companies, such as SACE, SIMEST, and other national grants. SIMEST serves as an institutional investor and a trusted Italian public partner, offering significant support to companies. These grants can be utilized for various purposes, including participation in trade fairs, establishing e-commerce platforms, and implementing export-oriented tools.
Lorenzo also emphasized the value of hiring a temporary export manager who can contribute their expertise to boost foreign market development without the need for a permanent employment contract.
Andrea further emphasized the importance of several key aspects that contribute to running a successful business abroad with the assistance of a professional accounting firm like Prager Metis. These aspects include a tailor-made approach, constant feedback, an in-depth understanding of the foreign target markets, talent acquisition, and compliance.
Furthermore, the best approach to internationalizing encourages your company to –
- Draft a clear and detailed business plan.
- Welcome a new culture and a different way of acting and thinking.
- Think like a multinational company, even hiring bilingual staff.
- Investing in marketing and communication strategies (“People buy from people they like”)
Going through the internationalization process means also getting many benefits such as –
- Growth and expansion of your business
- Diversification of your market
- Increased product marginality
- Greater competitiveness
- Enrichment resulting from encountering another culture
- Opportunity for expansion at the structural and financial levels.
However, as with any path to success, internationalization requires careful assessments and decision-making. Challenges such as bureaucracy, unstructured business plans, and non-compliance with tax regulations must be navigated and overcome to ensure success in foreign markets.
In conclusion, Andrea and Lorenzo shared valuable advice, including the recommendation to explore access to public funds and financial instruments whenever possible.
Additionally, they emphasized the importance of having a well-defined business plan that takes into account all tax, accounting, and financial aspects before entering the US market. By considering these factors and making informed choices, companies can pave the way for a successful and prosperous venture into international markets.
