Finding the right local partner: a due-diligence checklist
A good partner shortens your learning curve by years. A poor one can cost you your reputation. How to tell the difference.
For most companies entering a new market, partnerships are the fastest route to customers, credibility and local know-how. They are also where many expansions quietly fail, because the partner was chosen for availability rather than fit.
Define what you need first
Write down the job: distribution, installation, regulatory navigation, customer service, or all of the above. Different roles call for different partners, and one partner rarely does everything well.
The due-diligence checklist
- Track record: can they show relevant customers and references you can call yourself?
- Financial health: do they have the working capital to carry stock or fund operations?
- Reputation: what do other companies, customers and officials say about them?
- Capacity: do they have the people and systems to give you real attention?
- Alignment: do their incentives point in the same direction as yours?
- Ethics: are they comfortable with your compliance and anti-corruption standards?
Start small and structured
Begin with a pilot agreement, clear targets and a review date. Share a simple scorecard with the partner so expectations are visible on both sides, and meet regularly in the first six months.
Trust is built by delivering small things on time, in both directions.
Keep your options open
Avoid long exclusivity before the partner has proven itself. If exclusivity is necessary, tie it to minimum performance and make sure you can exit cleanly. Introductions through trusted networks save time, but they do not replace your own checks.
