26/05/2024
𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐢𝐧 𝐈𝐬𝐫𝐚𝐞𝐥𝐢 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 – 𝐒𝐞𝐢𝐳𝐞 𝐭𝐡𝐞 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲, 𝐬𝐭𝐚𝐯𝐞 𝐨𝐟𝐟 𝐭𝐡𝐞 𝐫𝐢𝐬𝐤
At present, countless business investment opportunities can be found across almost every sector of Israel’s economy, including, but not limited to, retail, import & export, distribution, fashion, agriculture, industrial manufacturing, real estate development, yielding assets, and more (technology is a given).
With such a treasure trove of options, finding the right business to invest in and ensuring your investment can be daunting. To navigate these opportunities, understand the environment, assess associated risks, and select the right business partners, especially a knowledgeable representative, whose experience and guidance provide the best path towards achieving your goals.
𝐓𝐡𝐞 “𝐠𝐨𝐥𝐝𝐞𝐧 𝐭𝐫𝐢𝐚𝐧𝐠𝐥𝐞”
As a precursor to doing business in Israel, or anywhere, it’s crucial to arm yourself with a high-caliber core team, that I call “the golden triangle”, consisting of an attorney, an accountant, and at its zenith, a business representative who is 100% aligned and focused on your best interests. To build this triangle, start with the latter who will help you identify the most suitable lawyer and accountant. This trio is the basis for a winning experience in the Israeli business world.
𝐓𝐡𝐫𝐞𝐚𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐩𝐫𝐨𝐯𝐞𝐫𝐛𝐢𝐚𝐥 𝐧𝐞𝐞𝐝𝐥𝐞 𝐨𝐮𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐡𝐚𝐲𝐬𝐭𝐚𝐜𝐤
Getting to the nitty gritty, make things a bit less gritty by first briefing your representative about who you are and what you are looking for. The more they know, the better they can assist you. Collaborate with your representative to shortlist the most promising opportunities. Assuming that between yourself, your golden triangle, and other professionals, you have the capacity to crunch the numbers and professionally assess the shortlisted businesses, here are a few additional things to keep in mind:
🔹 Don’t assume that buying an existing business is cheaper than forming a new one.
🔹 Don’t linger on your decisions; opportunities can vanish quickly.
🔹 Be wary of overpriced deals.
🔹If someone is polite, it doesn’t mean they are naive.
🔹Technology startups are finding it difficult to raise funds, such that they are more open to negotiations and compromise.
🔹Evaluate risks and plan how to deal with them to limit potential downside.
This last point is an absolute must. Once you’ve decided on a candidate, be meticulous in conducting due diligence. Even after selecting your racehorse, continue to mind and mitigate risk, for instance, by not committing all your investment upfront and basing further installments on milestones and benchmarks that you’ve drawn up with your rep.
--
Avner Giladi
Better business is our business
Serving corporate executives, business owners & investors for more than 35 years.
[email protected]
