Investor Presentaiton

12 B. Degree of Involvement from US Management Next, an Investor should consider how much involvement the Investor wants in a US business. Does the Investor want to own and operate a US business or is the Investor comfortable relying upon the assistance of US management? An Investor should consider the following questions: Is the Investor most comfortable with, at least initially, establishing a contractual relationship with a US company, e.g., a distribution agreement, sales representative or other agency agreement, or a cooperation agreement? Is the Investor willing to make an investment in a US company that will be managed by US management? Is the Investor seeking to form its own US company based on the Investor's unique business model? Is the Investor seeking to acquire a US company that will be operated by foreign management? Related closely to each of these questions is the Investor's tolerance for risk, primarily the potential exposure to liability in the US. The US business culture is known to be very litigious, and it is common for US businesses to make and defend against claims that may end in court or arbitration. An Investor should consider risk management and insurance issues and costs in connection with its analysis of involvement in a US joint venture. C. Desired Qualities of Potential Investment Targets in the US Collaboration and the meeting of each other's expectations is often the single biggest source of frustration between parties. If an Investor seeks to rely on US management of the US operations, the Investor should determine whether the potential investment target in the US has the skills, experience, and willingness to adapt its business operations to meet the needs of the Investor, the Investor's business culture, and the Investor's customers. The required collaboration is mutual: Investors need to work to understand the customs and traits of US businesses; and US businesses need to understand the customs and traits of foreign Investors. Each side must work to meet and manage the expectations of the other side. This requires the right personnel and clear communication. Face-to-face discussions and confirming memoranda can ensure that parties do not leave the same meeting with different understandings of what was agreed. Garvey Schubert Barer ▲ gsblaw.com

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