A recent article by Tom Stringer, Global Site Selection and Business Incentives Consultant at US Tax advisory services provider Ryan – provides superb insight for US lawyers seeking to identify and secure specific foreign companies as clients amid profound growth in foreign investment into the US.
Specifically, Stringer cites statistics published by the US Bureau of Economic Analysis, which outline that “In 2013 alone, international firms invested $236 billion in the U.S. economy, a 35 percent increase from 2012.” And as the report details: “The United States is the largest recipient of foreign direct investment (FDI) in the world.”
A veritable roadmap for any US lawyer seeking to build a client base from foreign investment
What’s interesting about Stringer’s article is that combining his expertise with statistics from the US Government – he outlines the prime foreign country sources of this investment, which sectors account for most of this investment, and key state recipients of this investment. It’s a veritable roadmap for any US lawyer seeking to build a client base from foreign investment.
Notably, Stringer also outlines what specific states are doing to create incentives to attract more foreign investment. Any lawyer, anywhere in America – can seek to generate a client base from the investors these statistics are based on. And a final statistic worth pondering is this: “Foreign direct investment (FDI) in U.S. businesses, measured on a cumulative stock basis, reached $2.7 trillion at the end of 2012, which is equivalent to about 16 percent of U.S. gross domestic product.” What that means generally is: If your US law firm is not seeking to generate new business from foreign investment, you are leaving 16% of potential firm revenue on the table.
Most US law practices will have not just one but many specialisms of significant value to foreign investors new to doing business in the United States. Just as much as your US clients need your services, foreign investors may need them more. A variety of strategies can and should be employed to identify, pursue and capture business from this foreign investment into the US. But as 16% of the US economy is comprised from foreign investment sources – law firms not focused with a high degree of precision on this already — should now immediately re-orient their focus and strategy to remain competitive in a future that will no doubt see more US GDP coming from foreign investment, not less.
Based on more than 13 years experience with hundreds of lawyer clients from throughout the world, John Grimley counsels law firms, law firm practice groups and individual lawyers on best practices in generating new business in international markets. You can reach him at: email@example.com or on: +1 (213) 814-2855 or on +852 8170 3909 or on Skype at: JohnGrimley