Expansion of Lithuanian-owned companies abroad

Lithuanian businesses are increasingly taking confident steps into international markets by acquiring foreign companies or establishing subsidiaries abroad. This is a clear indication that Lithuanian capital has matured to operate globally. However, this move brings not only new opportunities but also significant challenges—which we observe in practice. Edgaras Margevičius, Managing Partner at Prevence and a seasoned expert in mergers and acquisitions (M&A), shares insights on the key aspects of international expansion and practical advice for companies aiming to establish a strong presence in foreign markets.

Business growth and expansion go hand in hand with team integration, cultural alignment, and operational optimization—factors that play a critical role in the success of any cross-border transaction.

Successful expansion abroad is not just about conquering new markets or financial metrics. It is about the company’s deep ability not only to adapt to new market conditions but also to effectively integrate teams from different cultures. Research shows that a significant portion of international M&A transactions fail to meet expectations due to unsuccessful team integration or poor cultural management. The success of expansion depends not only on technical or financial aspects but also on the ability to create added value through people and their shared pursuit of common goals.

Remote management can be effective for day-to-day operations, but significant cultural changes and the integration of international teams require direct contact. When executives work on-site, even temporarily, they gain a better understanding of the local market, work environment, and team motivations. The physical presence of leadership strengthens trust and signals to local employees that their contributions are valued, and the company’s integration process is a priority. Such leadership enables quicker problem-solving and fosters a smoother transition process.

When expanding operations, Lithuanian companies often encounter different work methods, communication models, and business traditions. In Scandinavia, a more informal, collaboration-driven culture prevails, where employees expect flexibility and inclusion in decision-making. In contrast, in Central Europe, employees are often accustomed to a clearer hierarchy and structured management. In Southern Europe, personal relationships and loyalty to leaders hold significant importance.

The US is often regarded as the dream market for all startups, but as Inga Langaitė, former head of Unicorns Lithuania, pointed out in a conversation ( https://www.youtube.com/watch?v=CSdL-JZtX7U&t=2357s ), this market is often mistakenly perceived as highly homogeneous. Lithuanians often lack self-confidence – we tend to be modest and are not as effective at “selling ourselves” to Americans. This cultural difference, combined with the belief that America is a uniform market, can pose a significant challenge. When merging such different business philosophies and aiming for successful integration, it is crucial to delve into cultural nuances and learn to communicate more effectively.

Process optimization is another critical area. In international transactions, companies from different countries often use vastly different working methods. By establishing a clear standard for operational processes, it is possible to ensure efficiency and transparency. However, it is essential to maintain flexibility, allowing local teams to retain specific practices that are important in their market. The balance between standardization and local peculiarities not only helps avoid redundant work but also motivates local teams to engage in the overall structure.

Legal compliance is another crucial aspect that often determines the smooth growth of a business in international markets. Labor laws, data protection regulations, and other legal requirements vary across countries, making it essential to consider these factors during the early stages of integration. For example, in the European Union, labor law requirements and the General Data Protection Regulation (GDPR) are strict and highly regulated, whereas in the United States, labor law tends to be significantly more flexible.

The expansion of Lithuanian-owned companies into international markets is a long-term value creation process, not merely the conquest of new markets. It requires the integration of diverse cultures, the efficient merging of processes, and the motivation of people. Executive, clear strategic decisions, and investments in relationship-building are key factors that determine whether the expansion will become a true success story of involvement growth.

Contact Us

The Prevence legal team can become your global legal partner, assisting with complex corporate governance and M&A issues. With our extensive network of international partners, we ensure smooth management of processes both locally and globally.

Email: info@prevence.legal
Phone: +370 664 42822