Implementing Strategy in Australia

Key considerations for implementation of investment strategy in Australia.

Purchasing assets, conduction business or investing in any foreign country is a complex and challenging process, and in Australia, it’s no different. We regularly advise clients not only on their strict financial and personal requirements but also on the practical steps they need to take to avoid the pitfalls and risks that arise when investing in Australia. We recommend the following:

• Work with experienced advisers to gain knowledge about the target business and the local legal environment (including regulatory approval requirements) and risks.
• Don’t underestimate the importance of due diligence and avoid delegation only to your junior team members or third-party service providers– due diligence inevitably reveals business-critical issues that require senior management attention.
• Ensure your advisers have lived or worked in Australia and have established relationships with key regulators, particularly foreign investment, competition and corporations’ regulators.
• Structure the transaction sufficiently in advance to achieve an optimal outcome and potentially avoid liabilities.
• Plan and execute your acquisition or investment strategy carefully and prepare for contingencies – consider how proposed legislative changes may affect your cash flow and how that might affect your strategy.
• Devise a long-term plan with a strong and committed team on the ground.
• Carefully allocate tasks between advisers and management to avoid duplication but ensure there is sufficient sharing of information to allow fully informed decisions to be made.
• Consider your media and investor relations strategy. Don’t underestimate how public perceptions can change shareholder or government sentiment.
• Prepare for the period post-completion. Integration is difficult and time-consuming but can make the difference between successful and unsuccessful deals.
• Be flexible and be prepared to change the deal if necessary but be careful of ‘deal capture’ and the mentality of doing the deal at any price or on any terms.
• Try to stick to a tight but realistic timetable – some delays may be inevitable, but a loss of deal momentum can be fatal.