Press Releases
Woodward Partners joins forces with NYU Stern School of Business to develop an innovated investment model to help companies avoid the pitfalls of overseas investmentsFor Immediate Release
Media Contacts: Woodward Partners
Singapore: Natalie Maxwell-Davis
Email: Natalie@woodward-partners.com
Phone: + 65 3106 2068 ext. 400 (Singapore), + 503-345-0764 ext. 400 (USA)
US: Kurt Messersmith
Email: Kurt@woodward-partners.com
Phone: + (206) 604.4081
Singapore - July 23, 2008
Many experienced companies encounter difficulties when they attempt to enter Asian markets via acquisition. Having followed a tried and tested process, they are surprised when they fail to achieve forecasted results. Professor Rob Salomon of the NYU Stern Business School states, "The difficulty of estimating overseas opportunities is largely due to a lack of quantifiable measures regarding social, political, religious, economic, or technological factors. These factors are critical inputs to the international investment decision, but are difficult to quantify, so they are often made based on managerial intuition." According to Professor Salomon, "It is much easier to estimate demand where we know what a country's population is, we know what their disposable income looks like, and we know what GDP per capita looks like. However, China is a collectivistic country and United States is an individualistic country. How do I factor that into my demand equation?"
Woodward Partners, a management consulting firm that helps multinational and midmarket companies succeed in Asia, has joined with Professor Rob Salomon of the NYU Stern School of Business to develop a new investment analysis and risk measurement financial model that will help avoid these problems.
When investing in overseas markets, many firms overestimate the opportunities and underestimate the costs that exist. These mistakes are often costly.
The model helps companies evaluate significant international investments by quantifying social, political, religious, economic, or technological factors which are normally not factored into investment analyses. Measuring critical risk factors will enable companies to develop a more robust evaluation of overseas investments, more accurately reflect key differences between markets, and invest with confidence.
"This new model enhances Woodward's capabilities in investment analysis in Asia and extends our ability to deliver value to clients, making significant investment commitments in the region," said Mathew Cobbett, head of the Woodward office in Singapore.
This model draws upon a wide body of current research data to calculate robust risk adjustment factors. Using the model under the exclusive agreement, Woodward is able to conduct market analyses to help companies assess any market, to create sound forecasts of future cash flows, apply Acumen to help companies make better entry decisions, and reduce the probability of failure.
Matt Mathias, director of US office, said, "Our clients face challenges investing in Asia because there are so many unknowns. Many people intuitively understand some of the risk factors, but measuring them and feeling comfortable that we've accounted for the most important issues are another matter." He added, "We're pleased to be working with [Professor Salomon] on this."
Professor Salomon said, "I'm confident this will add a great deal of value to companies who are considering investing overseas."
About Woodward PartnersWoodward Partners is a management consulting firm that specializes in helping global and midmarket companies succeed in Asia. Woodward's experience and flexibility allows us to assist a variety of clients in a variety of situations - we help companies with no experience in Asia, companies with limited experience in Asia, and companies who are already established in Asia but wish to achieve optimal growth. Our strong connections with leading business schools gives us access to cutting-edge expertise that many practitioners do not have. We use that expertise to develop solutions for the specific challenges that companies face. Woodward has offices in the US, Singapore, and Japan. For more information, please visit www.woodward-partners.com. An article featuring Professor Salomon's views on investing overseas can be found on www.woodward-fellows.org.
About Professor SalomonRobert Salomon joined the faculty of New York University's Stern School of Business in September 2005. A graduate of NYU Stern's doctoral program, he was on the faculty of the Marshall School of Business, University of Southern California prior to returning to New York University. Professor Salomon's current research centers on the management and economics of international expansion. He studies how and why firms enter foreign markets, how firms manage the cross border technology transfer process, and how international expansion impacts firm performance.