Due Diligence and Local Business Consortiums: The Untapped Resource in Transnational Business Expansion

Abstract

This short article outlines the primary functions of business consortiums abroad and demonstrates why such entities are crucial to new business development. Further, this article explores the role consortiums play in business development - as illustrated by a qualitative case study in Buenos Aires, Argentina - and seeks to answer the following questions: (1) What assistance do consortiums provide to businesses expanding into foreign countries; (2) What roles do business consortiums play outside of the United States; and, (3) Why do representing firms fail to fully utilize consortiums when helping clients expand into foreign markets?

Part I briefly discusses why consortiums are often overlooked by business leaders and lawyers during the due diligence process and business development stage. Part II explores the various benefits of consortiums for new ventures and for businesses expanding into foreign markets.

Keywords: transnational law, business, due diligence, consortiums, associations