by Gianfranco Bisagni, Co-Head of Corporate & Investment Banking, UniCredit
International expansion is a common strategy for European corporates. However, if not managed properly, it can bring with it a number of challenges and pitfalls. Gianfranco Bisagni, Co-Head of Corporate & Investment Banking at UniCredit, delineates the key drivers of corporate expansion and the strategies for the smoothest possible process.
What trends are you seeing at the moment in terms of corporates’ growth strategies?
European corporates have the resources and the appetite to expand internationally. According to UniCredit Research’s recent study, Internationalisation of companies by 2030, outward foreign direct investment (FDI) is a highly popular strategy – German and Italian multinational enterprises (MNEs) are already among the top global players and are expected to double their foreign investment activities by 2030. In the case of Germany, we are talking about an additional EUR 1,200bn and for Italy EUR 500bn, with the Eurozone and the US remaining the most important destinations.
This builds on a longer-term trend that has seen growth in FDI outpace worldwide trade volumes by 1,400% between 1980 and 2014.