In focus: FDI and Foreign Business Expansion in NH

Since 2001, foreign business activity has increased in intensity. Foreign direct investments as greenfield investments and acquisitions have been part of the diverse pattern of expansion. Of all acquisitions that foreign companies made in the state, about one third have been acquisitions of other foreign companies. Just over 1/10th of foreign companies’ acquisitions in New Hampshire were part of larger acquisitions of US-based companies. In these cases, international firms have gained operations in the state as part of larger expansionary effort in the US. Greenfield investments and additional investments into existing operations are third in the ranking of foreign business expansion approaches. Acquisitions dominate, followed by contract-based expansion.

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Expansion via acquisition of local company and expansion via acquisition of another local foreign subsidiary were about equal in numbers. In a few instances, the foreign company expansion in New Hampshire has been pursued via partnership with another foreign company already here. In one case, a foreign company partnered with a US company to acquire a local firm. In a number of occasions, foreign firms in the state have facilitated US firms’ expansion in New Hampshire via acquisitions and partnerships. One instance has been logged of a foreign firm acquiring a US company and integrating it in its existing New Hampshire subsidiary. Most acquisitions have been taking place in utilities, followed by the industrials and healthcare sectors.

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Contract-based expansion has been featuring a majority of contracts to give foreign companies access to the New Hampshire market. Fewer contracts have increased foreign firms’ involvement in manufacturing in the state. Most distribution and contract-based expansion in New Hampshire took place in the utilities sector, followed by IT.

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Firms actively pursuing expansion have represented about 17 countries. Expansion efforts have typically involved other local companies (foreign, US-based, NH-based). A majority of these interactions have engaged local companies. Foreign firms have been highly integrated in New Hampshire business activity in general and contributed to transactions and business development in the state.