When an investor enters a new market, the question is not just... "Is it possible to establish a business?"The more important question is... "What organizational structure should we adopt to best suit our investment goals and operational needs?"
Once the objectives are clarified, the new structure can be evaluated according to its proper role: a means of serving business strategy.
Ownership and control structure
Clarify who owns the property, who makes the decisions, and how the benefits are allocated.
Capital structure & cash flow
Consider how capital is introduced, used, replenished, and circulated within the model.
Operating structure
Determine which functions should be assigned to which legal entity and how the entities should coordinate with each other.
The potential for future change
Assess the impact of expansion, additional investors, restructuring, or divestment as needed.