A Treasurer’s Playbook for Entering New Markets

Despite macroeconomic uncertainty, corporates continue to pursue growth opportunities. A recent study shows 72%¹ of organisations have plans of expanding their geographic presence.

But expansion comes with complexities for treasurers, which can include managing an increased number of banking partners, and navigating differences in legal, tax, and regulatory frameworks across markets.

From our experience, we have outlined a three-phase approach for treasurers to achieve their company’s international ambitions.

Phase 1 - Design

This critical phase requires close collaboration with internal and external stakeholders to assess financial and operational needs, and the company’s readiness. Treasurers perform due diligence, and establish a detailed project plan for market expansion.

For example, to determine the future corporate structure, treasurers should understand the ownership share of new entities, as well as their expected operational needs and transaction flows, and evaluate the pros and cons of different incorporation options.

Phase 2 - Integrate

The next phase involves implementing the desired treasury structure. A dedicated working group is recommended to ensure proper governance is in place for change delivery.

Dedicated IT resources should be allocated to support system implementation in new markets. Dialogue with local industry peers will also smoothen local treasury set-up.

Post-integration governance is key to achieving a resilient and scalable treasury.

Treasurers should ensure teams in new markets have sufficient resources and training to follow group treasury policy for performance management and control. Robust control mechanisms must also be in place to address future changes in local regulations in a timely manner.

• Engage advisors from banks, legal, and tax in the early stages to predict potential integration challenges.
• Optimise operational efficiency of your new treasury functions through global standardisation and centralisation.
• Effective project management and continuous monitoring are essential to successful integration.