Global connections: Finding an overseas partner

Your overseas partner can make or break your export business. Finding the right partner starts with looking in the right place.

There's no real art to finding the right overseas partner, just the logic of pairing two businesses with common goals—and, of course, due diligence. But if you're stuck for places to look, you're probably missing a crucial step.

It sounds obvious, but the first thing you need to do is identify the type of partner you seek. There are several different types of partners and each will perform a specific function and complement your business in different ways; looking for a distributor would involve a different type of search to looking for a joint venture partner, for example.

Next, define what you expect from your partner. Ask yourself questions such as: What kind of feedback do I expect from them about my business? How involved should they be in decision-making? Are they capable of giving my business the attention it requires? Communicating this part clearly should narrow the choice of potential partners by what they can, or are willing to, provide.

Playing the seeker
Rhonda McSweeney, executive general manager of FCm Travel Solutions, says that when Flight Centre sought overseas partners to expand its global network, it was after a mixture of agencies to acquire and licensees to carry the brand. The best indicator of a good partner was domestic strength. "We ensure the agencies we select have a strong local reputation. Foremost, they must be well established in their local corporate travel sector," she says. "Secondly, they must be respected for the quality of their service and product offering."

The other key thing that consolidated the brand was finding partners with the same outlook. “We believe the ultimate foundation for a strong global network is having the same philosophies and approach to service,” says McSweeney. “This ensures that around the world we all share the same ‘business DNA’.”

Once you know what you want, where do you look? The most common method is to issue a request through an organisation such as Austrade, or via the export department of your state government. Other good places include global industry institutes, regional associations, bilateral chambers of commerce and trade fairs.

Less reliable are the internet and distant acquaintances of distant relatives. Don't underestimate the value of asking other exporters where they found their partner; save yourself some time and hassle as word-of-mouth referrals could be useful for finding a partner—or avoiding others.

Yin Robards is the business matching executive at the Australian branch of the Hong Kong Trade Development Council, overseeing applications for all types of partnerships: from manufacturers, distributors and agents to joint venture proposals. She says seekers often want their partner to have experience and knowledge of their market, be trustworthy and have a proven track record. “Most also look for continuing business relationship rather than something one-off,” she adds.