Insights

The Starting Scenario

Our journey with a European software resale and licensing company began at a pivotal moment in their business trajectory. The company had a solid foothold in Southern Europe, thriving in a market they understood well. However, the entrepreneurs had set their sights on a much grander ambition: expanding into the global arena, with a particular focus on the burgeoning markets of the Middle East.

Despite their successes, the company faced a significant hurdle. Their revenue, just shy of €5 million, and their operating margins were not robust enough to support traditional expansion methods. The company’s reliance on direct e-commerce sales, both B2B and B2C, presented another challenge. Online transactions in Asian markets came with high electronic transaction costs, eroding their already thin profit margins. The dream of international expansion seemed daunting, if not unattainable, with these limitations.

Determined to turn their vision into reality, the company sought the expertise of Premier Advisory. Our reputation for navigating complex international markets and our deep understanding of transcontinental tax legislation made us the ideal partner for this ambitious project.

Project Analysis

At the outset, our team of advisors conducted a comprehensive analysis of the company’s situation. The findings were clear: the current revenue and profit margins could not support a traditional expansion into the East. We needed a different approach—one that would minimize costs while maximizing opportunities.

Our analysis also revealed some key strengths. The company’s price list was competitive, and their customer portfolio was strong, signaling the potential for success in new markets. However, the competitive pricing strategy that had fueled their growth in neighboring markets also resulted in razor-thin margins.

We knew that to achieve the desired expansion, it was essential to reengineer the business model from the ground up. This included rethinking distribution channels, payment systems, and the entire commercial structure, all while ensuring optimal tax efficiency.

The Solution

Our solution was a tailor-made development project designed to transform the company into a formidable player in the global market. The strategy hinged on establishing a presence in key international hubs, starting with Dubai—an ideal gateway for penetrating Asian markets.

We restructured the company’s operational model, shifting from a centralized headquarters in Southern Europe to a more dynamic setup. This new configuration included a commercial development office in London and a dedicated office in Dubai focused on Asian market expansion.

A critical element of our strategy was partnering with fintech companies in London to reduce electronic transaction costs. This move was pivotal in creating the operational margins necessary for targeted marketing and sales efforts in the Asian region, all managed from the Dubai office.

With our guidance, the company successfully entered new markets, including Singapore, Pakistan, India, the United Arab Emirates, Turkey, and much of the Indochinese peninsula. Our advisors supervised every step of the project, ensuring that the development plan was meticulously implemented and executed over a two-year period.

The Results

The results of this ambitious transformation were nothing short of remarkable. By the end of the consultancy cycle, the company had achieved a staggering 289% increase in revenue and a 353% growth in its client base. What began as a challenging expansion dream had evolved into a thriving intercontinental distribution network.