Overview

National and regional specialty or fine chemical companies seeking to expand internationally typically encounter the following challenges:

1.Identifying and evaluating growth options, and formulating strategy

National and regional businesses that either aspire to becoming more international and ultimately ‘global’, or that must internationalise to avoid being marginalised (or ‘consolidated’) by larger competitors are often disadvantaged as they move onto the world stage:

• Whilst they may possess plenty of data, they often lack real insights into and understanding of international markets and the direction and mind-sets of major players. This greatly inhibits their ability to identify and adequately assess the strategic options open to them
• There may be many apparent ‘opportunities’, and defining the optimum strategic mix is difficult. For example, assessing the risk/reward equation of disparate options is highly complex, and balancing short-term gains against building a business that is sustainable in the long term can be a minefield. Many are lured into joint ventures and contractual commitments that give quick returns but effectively ‘tie their hands’ and limit future growth
• Top management is busy running the business. They have insufficient time to explore all the complexities of international expansion with adequate rigour. This can be especially problematic where there is pressure to internationalise - e.g. if the company operates in a sector undergoing consolidation.

Faced with too much data but insufficient insight and understanding, with limited experience of internationalisation and with limited resources to investigate and advise their decisions, some companies become indecisive and so miss genuine opportunities, whilst others are rushed into making poor investment decisions.

2. Finding and approaching suitable partners and/or acquisitions

Having defined a robust strategy for internationalisation, the company often then must find, approach and negotiate with potential partners and/or acquisition targets. There is enormous scope for the inexperienced to make mistakes or to be ‘sold’ a deal that is not ideal.

3. Integrating international operations

Making the ‘right’ acquisitions or signing the ‘right’ j.v. or distribution contracts is just the beginning. To benefit from international expansion, the company must integrate its operations: it must achieve the potential synergies that increased size and international presence offer, but without adding corporate overheads, disrupting the running of its new operations, de-motivating or losing staff, and alienating customers and suppliers

Services

Cerebra Consulting Ltd and its close affiliate Cogency Chemical Consultants Ltd provide services in these areas.

Cerebra is focused on advising on the complexities of organisational development and integration in
the chemical and materials industry. The services described elsewhere in this website have
particular relevance to companies that are rapidly internationalising.
Cogency [hyperlink] is focused on supporting multinational acquisitions in the chemical and
materials industry
Together, Cerebra and Cogency advise on strategy development.

Credentials

Cerebra and Cogency together have:

• Extensive knowledge of international chemicals and materials markets and the major players
• In aggregate, several hundreds of years experience in planning and leading international
  chemical businesses
• Access to many key experts and decision makers
• Resources and analytical skills to advise on the selection of strategic direction
• In-depth experience in successfully integrating multinational operations