The five key takeaways are:
- There are potential opportunities for Irish companies in the United States at this time
- Laws vary dramatically in the US from state to state, what do Irish companies need to know?
- The future of the clean energy industry will depend on the upcoming US presidential election
- What can Irish companies be doing now to prepare for a move to the US?
- Find advisors who have succeeded in the US market
The third webinar in the Ireland INC Leadership Series took place on Wednesday, 2nd September at 3pm GMT +1, and was centred on the theme of ‘New Horizons in the US: Growth in a Time of Challenge’ – how Irish companies can navigate the current challenges of doing business in the US and what the future holds.
The webinar comprised of a fireside discussion between Sarah Freeman, Managing Editor, Business & Finance Media Group and Mike Burke, Partner, Arnall Golden Gregory.
If you missed this fireside discussion, you can watch it here.
- There are potential opportunities for Irish companies in the United States at this time
When asked if there are opportunities for Irish companies in the United States at this time, Mr. Burke discussed Irish companies who already in the US, but looking to expand: “We’re at the front-end of seeing ‘troubled assets type sales’, or sales where a seller is in some kind of insolvency or bankruptcy, and would be looking to dispose of assets at, perhaps, discounts […] Add to that interest rates that are incredibly low: money is cheap if companies want to borrow.”
Among the industries Mr. Burke listed as great expansion opportunities presently are PPE, pharmaceuticals, medical devices, and life sciences, while noting that one area to stay away from is real estate, as it is expected there will be “a wave of defaults from tenants and leasees.”
- Laws vary dramatically in the US from state to state, what do Irish companies need to know?
Mr. Burke spoke at length about the differences in laws not only between Ireland and the US, but also in the US from state to state. He acknowledged that it was important to be aware of both similarities and divergences when expanding into the country.
“We’re both common-law jurisdictions, we draw our laws from the same place, but there’s some divergence,” he said.
“We have a system in the US where certain laws, like intellectual property, are reserved for the federal government. Other laws, such as corporate laws, are reserved for the state government. If you were to ‘Americanise’ your Irish law documents, you’re probably starting at half way. A lot of basic legal concepts in Ireland translate here.
“Our copyright systems are different, because we don’t require a filing in the US. You can just put the copyright symbol, and you have a copyright in the US.”
- The future of the clean energy industry will depend on the upcoming US presidential election
When speaking about the future of the clean energy industry, Mr. Burke noted that it will very much depend on the upcoming US presidential election, as both candidates have diverging views on the sector.
“I know there are a number of Irish companies across the spectrum of clean energy, from wave energy to wind and solar, who are maybe more comparatively developed to their American counterparts. Should Vice President Biden win, that could be a good opportunity for Irish companies to invest in the United States in the clean energy sector.”
Mr. Burke noted that one of Joe Biden’s election promises is to promote clean energy alternatives should he be elected. Donald Trump, by contrast, has introduced tariffs on solar panels, and his administration instead promotes the idea of ‘clean coal’ as an energy alternative.
“I would be a little less enthusiastic on the prospects for clean energy under a second-term Trump administration,” Mr. Burke said.
- What can Irish companies be doing now to prepare for a move to the US?
In response to a question on what Irish companies can do in the present moment to prepare for a move to the United States, Mr. Burke said: “Start small, start on a regional basis. Break the US into regions – start with North East, Mid Atlantic, California or the South. “
He also quoted former US President Ronald Reagan in saying ‘trust but verify’: “Yes, be flattered from whatever attention you get from the US market, but don’t be overly-flattered. Don’t jump at the first opportunity necessarily. You can, after due diligence, but don’t jump just because that’s the opportunity at hand.”
- Find advisors who have succeeded in the US market
In preparing for a move to the US, Mr. Burke recommends that Irish companies complete research and find advisors who have succeeded in the past: “Ireland INC has that resource,” he said. “Enterprise Ireland has that resource. Talking to people about what worked and, more importantly, what didn’t work. A lot can be learned from when things don’t go well.”
