Getting ready for partners abroad

Before an overseas organisation commits to a partnership, it will seek assurance on identity, capability and conduct. Businesses that prepare this evidence in advance enter those discussions from a stronger position.

Businesses seeking partners in other markets tend to focus on what they require from a counterpart. The prospective partner, however, is conducting its own assessment, frequently before any conversation has taken place. It may be evaluating an organisation it has never met, operating in a market it does not know well, under a regulatory framework that differs from its own. The more of its questions that have been anticipated and answered, the more productive the initial engagement is likely to be.

This article sets out how to prepare that evidence. It is not a substitute for specialist advice on the legal, tax or financial aspects of a particular market.

What a prospective partner is likely to assess

Requirements vary by partner and sector, but enquiries typically fall into six areas:

• Legitimacy. Registered company details, address, ownership and management, and trading history.
• Proposition. A precise description of products or services, target customers and areas of particular strength.
• Capability. Capacity, team, relevant track record and the proposed operating model for joint work.
• Assurance. Policies, certifications and insurance, and the approach to data protection, health and safety, and ethical conduct.
• Alignment. Many partners, investors and buyers enquire about environmental, social and governance (ESG) performance. Some also ask how an organisation's activities relate to the UN Sustainable Development Goals.
• Rationale. The objectives of the partnership, and the reasons for entering this market at this time.

A readiness checklist

Before approaching prospective partners, organisations should assemble the following:

1. A one-page company profile. Identity, activities, location, registered company number and a named point of contact.
2. Consistent public records. Details held on Companies House should match those on the organisation's website. Discrepancies are readily identified during due diligence.
3. Evidence of delivery. Examples of previous work that may be shared, and references where available.
4. Core policies and certifications. Those relevant to the sector, such as quality, environmental, health and safety, data protection and anti-bribery policies, together with any accreditations held. The distinction between independently certified standards and internal policies should be stated clearly.
5. An ESG position statement. Current practice, work in progress and known gaps. Accuracy is more valuable than ambition.
6. Partnership objectives. What is offered, what is sought and the intended structure, for example a distribution agreement, a joint venture or a strategic partnership.
7. A capability pack. The above, consolidated into a single document that can be provided on request.

An overseas partner cannot observe how a business operates. The documentation must do that work.

Selecting target markets

A focused shortlist of markets is preferable to a broad search. For each candidate market, organisations should consider where demand for their offer exists, where existing relationships can be leveraged and where they understand prevailing business practice. Trade associations, chambers of commerce, summits and sector events provide established routes to meet potential partners. The UK government's great.gov.uk also provides guidance and support for UK businesses seeking to sell overseas.

Acknowledging gaps

Few smaller organisations will satisfy every item on the checklist at the outset. This need not be an obstacle. What matters is a clear understanding of the gaps and a credible plan to close them. A precise statement that a certification is not yet held, with an expected date, is more reassuring than an imprecise answer. Transparency about current limitations establishes trust early in the relationship.

Initial contact

The first message should be concise and should cover:

• the organisation's identity, in one or two sentences;
• the reason for contacting this particular partner;
• the proposed basis for working together;
• a single, clear next step, such as a short call.

Supporting material should be linked rather than sent in full. Any follow-up should take place when stated.

Key takeaways

• Anticipate the partner's assessment across legitimacy, proposition, capability, assurance, alignment and rationale.
• Ensure public records and published information are consistent.
• Consolidate evidence into a capability pack before outreach begins.
• Prioritise a small number of markets.
• State gaps openly, with a plan and a timeline to address them.

How GBSS supports this

LeadStance is developing GreenBridge SummitSync (GBSS), an international platform with a worldwide focus, to support organisations through this process. GBSS is currently in beta testing as a working prototype at technology readiness level 6. The beta includes:

• partner search, with matching on ESG, industry, trade corridor, role and funding readiness;
• the ability to watch and connect with companies of interest, and to message them directly;
• readiness scoring, providing an ESG and compliance score that identifies the gaps affecting it;
• SDG mapping, aligning activities with the 17 UN Sustainable Development Goals;
• procurement readiness, including a downloadable Capability Pack for buyers.

As the platform remains in testing, some features are more developed than others. LeadStance is seeking organisations to evaluate GBSS against a live partnership or market entry and provide feedback. Further information is available on the GBSS page. To discuss your requirements, contact LeadStance.

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