The local partner problem
Every international expansion playbook tells you to find a good local partner. Few tell you how to do it without getting burned. We've seen companies lose a great deal of money on partnerships that looked perfect on paper and collapsed within six months: the partner who seemed well connected was connected to the wrong people, the distributor who promised exclusive access had already signed three competitors, the "strategic advisor" was collecting retainers.
Over the past decade we've vetted potential partners in markets from France to the UAE to Canada. Here's the framework we use.
Step 1: define what you actually need
Before you search, answer honestly: are you looking for someone to sell your product, or someone to help you understand the market? Do you need regulatory guidance or operational support? Is this a temporary arrangement for market entry or a long-term strategic relationship?
Most companies skip this step and look for a partner who can "do everything." That partner doesn't exist. Use the four sponsor tiers framework to map your needs precisely.
Step 2: source through several channels
Don't rely on a single source. The best partner portfolios are built by triangulating:
- Industry events: MIPIM, Web Summit, MAPIC and sector conferences are where serious operators gather. Don't just collect business cards; watch who has real relationships and who is performing.
- Trade bodies and chambers of commerce: bilateral chambers, such as the Franco-British Chamber, keep curated member directories. Quality varies, but they're a useful start.
- Professional service firms: law firms, accountants and consultancies in the target market usually know who the credible operators are, and who to avoid.
- Your existing network: ask clients, investors and advisors who they've worked with in the market. Warm introductions convert far better than cold outreach.
- Competitive intelligence: look at who your competitors partnered with when they entered. If it worked, the partner is proven; if it didn't, the reasons are valuable.
Step 3: the first-meeting framework
Your first meeting with a potential partner should answer five questions.
- What is their actual track record? Ask for specific examples of companies they've helped enter the market, with outcomes and timelines. If they can't name anyone, even confidentially, that's a red flag.
- Who are they connected to, specifically? Ask: "If I needed a meeting with this company or this person, could you arrange it, and how soon?"
- What is their economic model? Retainer, commission, equity, revenue share: the model reveals their incentives, and misaligned incentives destroy partnerships.
- Who else are they working with? Ask directly whether they represent competitors or adjacent companies.
- What would failure look like? Ask them to describe a partnership that didn't work and what they learned. Partners who can't admit failure are either inexperienced or dishonest.
Step 4: due diligence, the non-negotiables
- Reference checks: speak to at least three companies they've worked with, about outcomes but also communication, responsiveness and how problems were handled.
- Financial health: in most European markets company accounts are public. Check them. A partner under financial pressure will put short-term revenue ahead of your long-term position.
- Legal background: check the local business registers for litigation, director changes and related-party transactions.
- Cultural fit: spend time with the team who will actually work on your account, not just the principal who sold you the partnership.
Step 5: structure for protection
- Start with a pilot: a paid 90-day pilot with clear deliverables and KPIs before any long-term agreement.
- Define exit terms: what happens to your client relationships, data and market position if the partnership ends. This is the clause most companies skip and most regret skipping.
- Keep your IP and your clients: your brand, client relationships and intellectual property should never depend on a single partner.
- Non-compete windows: a reasonable non-compete of six to twelve months stops a departing partner from taking the market knowledge you paid for straight to a competitor.
Market-specific considerations
Partner vetting varies by market. In Switzerland, personal reputation weighs more than corporate credentials, so reference checks through personal networks are essential. In the UAE, a partner's relationships with government entities and free zones are critical. In France, the difference between a commercial agent and a distributor has legal consequences for your liability.
How we help
Vetting and activating local partners is core to our work. We keep active networks in all our markets and can usually produce a shortlist of vetted candidates within two to three weeks. We've also made the mistakes, so we know what to look for. Get in touch if you need a partner network built properly from the start.