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Thinking globally is crucial
By MATT CHANDLER
mchandler@bizjournals.com 716-541-1654
For attorney Charley Jacobs, a passion for international law begins at home.
As chairman of global strategies for Nixon Peabody, he has worked not only with international clients but with his own firm to guide its growing international operations.
"I've always had an interest in international law, going back to law school," Jacobs said, reflecting on a career that has spanned 35 years. "In my practice, which is corporate and private equity-based practice, I have had the opportunity to get involved in a number of transactions that have cross-border aspects to them."
That included helping Nixon Peabody set up an office in Paris.
"That dates back to 2009, and since then I've traveled there on a frequent basis to make sure our new partners in Paris would feel an integrated part of our firm and things would go smoothly," he said.
With that up and running, he continued to focus on the firm's international growth - a task he balanced with his own growing international equities practice.
"I've now taken a larger role in the firm from the standpoint of leading our international growth by developing the strategy for that and implementing it," he said.
That includes exploring opportunities in both Europe and Asia.
"We could be looking at other places down the road, but for right now, that's where we are focusing," he said.
As far as local companies going global, Jacobs said it is happening more than you think.
"There are many companies locally that are doing business globally," he said. "You've got the two largest privately held companies in the area, Delaware North and Rich Products, that have operations all over the world."
But thinking globally isn't just a slogan; it's one way that companies will thrive in the years to come. For many located in Western New York, however, it means more than just crossing the border into Canada.
"The misconception is that you've got to be big to be a global player," Jacobs said. "There are any number of smaller to midsize companies in the region that are taking advantage of opportunities in Asia, China, India, Europe and Africa. Many of them have had operations overseas for quite some time."
There are some key advantages, according to Jacobs. For example, the often lower cost of operating a business in another country, as well as advances in technology that help make such operations not only possible but nearly seamless.
"Here in Western New York, we are no different than the rest of the country," he said. "Manufacturers or producers, even small ones, can realize the benefits of technology and how it makes their ability to produce or sell somewhere other than where they are sitting very easy to do.
"We've got a very sophisticated business community here," he added. "People are looking at what their competitors are doing and then looking at what they need to do to not only stay competitive but get the edge. And global international business is part of that for many businesses."
There are challenges, however.
"Obviously, one part of it is just the logistics, which can force you to change the way you do business," Jacobs said. "When I started with our firm 22 years ago, we were all in the same time zone. Now we've got people in London, Paris, Shanghai, Hong Kong, Beijing and of course the U.S. You try pulling together a meeting with people that might span four or five time zones and you see one of the challenges."
Additionally, rules, customs and regulations can vary widely outside of the United States. For an American company doing business abroad, it can require a bit of a learning curve.
"Business practices from country to country are very different," he said. "And you need to be mindful and respectful of local cultures and customs. On the other hand, those cultures and customs may involve practices that are illegal in the U.S."
What is seen as providing a favor as part of a business transaction in one country may be seen as bribery in the United States. And for an American company setting up shop overseas, learning the ropes is critical to long-term success.
"The compliance challenges are significant issues. You have not only different legal systems, but you may not have fully developed legal systems," he said. "You've got different employment and labor laws and different benefit programs, and the company needs to understand the complexities."
At the end of the day, according to Jacobs, the benefits of global business outweigh the challenges for most companies. It all comes down to going into an international venture with your eyes open, having done your due diligence to avoid common pitfalls.
"Also, because you are not going to be there, you need to make sure you are hiring quality people, or move some of your people there," he said, noting that the rules governing employment abroad can be significantly different than stateside. "What you can do in the U.S., you may not be able to do outside the U.S. You need to know the difference."


