Good reasons for local investors to look to the US middle market
Foreign buyers can invest in sector driving the American economy without betting the farm, writes Sheon Karol
As a South African expatriate and frequent visitor, I am struck that South African businesses have expanded, organically or by acquisition, into western Europe, Australia and Africa but have not really exploited the US market. South African acquirers have travelled "in the realms of gold, and many goodly states and kingdoms seen", yet have barely dipped their toes into the US. It’s worthwhile to consider why this is the case and why it need not continue. The relative absence of SA from the US market could stem from a variety of factors. One could be the comparatively greater cultural familiarity with other markets, such as the UK. It also may be due in part to a reluctance to engage American braggadocio. There also may be a perception that the "American market" is monolithic, with outsized opportunities too cumbersome, complex or expensive to pursue. Due to the unfavourable currency exchange rate, for example, few South African companies would choose to buy a large, listed US compan...
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