Growing beyond a business’s existing core markets is challenging. Deciding which sector, service or geography to expand into, and then how to achieve that expansion, is complex and requires specific expertise to get right.
Henderton is able to support you from the initial question of whether new market expansion is the right strategic decision, all the way to supporting the business deliver the expansion that is right for you.
In planning for market entry, we use a broad range of skills including market and competitor analysis, financial modelling and stakeholder engagement. We then support the implementation of those market entry plans, working alongside management to ensure that the necessary operational change is driven through the business.
We have supported growth companies successfully grow into new markets and segments across the world. This includes establishedand emerging geographical markets, consumer and business markets, mainstream and niche product areas, direct and intermediated markets, and new, innovative markets enabled by the current rapid technological changes.
We begin by exploring which entry route options best fit your strategic goals. This might include organic market entry, a merger or acquisition, or joint venture.
Working alongside you, we evaluate each one using the criteria which are most important to you. We also make sure you have a solid understanding of financial implications, risks and benefits.
Henderton has experience of helping clients to enter new markets ranging from establishing subsidiaries or sales and marketing offices, to building a full local organisation from scratch.
We suggest a business model which has the best chance of succeeding in a new market, or inrelation to a new product or service. Then we define the optimal go-to-market strategy, including recommendations for, among others, commercial organisation design, operations, supply, sales and marketing.
We also develop a positioning and business development strategy in the new market, looking at channel infrastructure and whether the business may need to invest independently or in partnerships to build new routes to market. Finally, we support you with the necessary operationaland implementation aspects to get your venture launched.
Read more about our go-to-market services.
Our Transactions team focuses on commercial due diligence support for acquisitions, disposals (vendor due diligence) and refinancing, and we can be involved at any stage of the transaction cycle:
Pre-deal: developing the underlying rationale of the transaction by conducting a market opportunity assessment, and target identification and screening.
Transaction process: assessing the company's areas of competitive advantage, the sustainability of these, and the achievability of the business plan.
Post-deal: achieving key strategic objectives such as revenue synergies, development of market segmentation and pricing strategy, or international market expansion plans.
Please see out Transactions practice for more information.
Joint ventures allow one organisation to tap into another’s skills, infrastructure, and customer base to pursue new growth opportunities—without shouldering all the risk alone or buying the company outright.
Some involve the creation of a new legal entity, but most joint ventures are simply long-term strategic relationships with greater complexity and closer collaboration between partners.
They can be useful in situations of high uncertainty or unpredictability, for example in international markets or new industries with growth opportunities which acompany can’t or doesn’t want to pursue entirely on its own, or when complementary skills and capabilities are needed to develop or provide innovative offerings.
However, these must be set up correctly, as the risks of unclear governance, operational inefficiencies, and lack of commitment can offset any advantages a joint venture offers.
Once a preferred option has been identified, we can help you to develop a full business case so that you are fully informed of the implications of your preferred route and have a clear plan to implement it. We access our internal and external network of sector experts, across geographies where relevant, to gather insights on the industry.
For a merger, acquisition or joint venture we will help you find the right partner, agree terms, conduct due diligence and develop your target operating model. In addition, we can create a governance framework and build a robust business plan so that your newly configured organisation will succeed in the long term.
Market analysis: information about the value, size and growth potential of the market in the coming years.
Market dynamics: identification of the factors which stimulate market growth, as well as barriers and any formal restrictions for entry into the market.
Business environment: legal or technological aspects of doing business in the market, including hazards and risks associated with the investment and scenario analysis.
Market overview: analysis of key market players, including competitors and stakeholders which influence the shape and development of the market.
Market research: understanding of potential customers and their needs, expectations and shopping habits.
Competitor analysis: identification of the strongest players along with their business and sales models, product range, as well as the dominant marketing strategies and pricing.
Market entry strategy: research, analysis and prioritisation of new markets, including testing of plans and the development of new strategies.
Identification of partners: e.g. suppliers or distributors, and leading clients through the process of negotiation and early stages of cooperation.
Business model: options analysis for the business model with the best chance of success in the new market or new segment, product or service.
Market entry strategy: covering operations, supply, sales and marketing, and business development, including ways of dealing with investment risk.
Creation of legal entity: preparation of legal administrative documents, formalities related to registration of the legal entity and public authorities, payment of share capital.
Infrastructure and process: definition of accounting and HR plan, operational procedures, and advice on legal, tax and labour implications.
Scale-up process: building a structured process to translate market insight into high-impact ideas, quickly and rigorously, prototyping and pilot new ventures with an emphasis on ‘testing and learning’ to minimise risks.
Market mapping and sizing: analysis of the addressable market size, key customer segments, demand drivers and growth prospects.
Customer referencing: including competences and structural assets which drive competitive advantage, and the sustainability of these.
Future potential: upside growth potential, e.g. adjacent products or markets, and potential risks and issues identified and appropriately addressed, or plan put in place, e.g. demand sensitivity to economic cycle.
Due diligence: early stage 'outside-in' acquisition target assessment and buy-side commercial due diligence.
Rationale and drivers: understanding of the strategic logic for each organisation, clarifying the important drivers for the joint venture over and above the profit potential.
Existing structures: understand the existing structure of both parties, and possible effects on the new product mix of the JV because of potential changes in the business environment as a result of the recombination of approaches.
Business model: define the nature of the new venture including the proposition to the customer, the channels and relationship management, the value chain, the structure and roles, investments, income, costs and payments, success factors and the timetable for delivery.
Operating model: constructing an effective operating structure which shares risk, cost, and resources, minimising potential damage for both.
Governance model: creation of a governance structure which aligns each partner’s business agenda, as well as the objectives of the joint venture itself.
Commercial model: building a congruent commercial model which includes a risk-adjusted cash flow model, break-even analysis, unit costing and economic value-added rationale for the new business.
If you would like to learn more about our experience, please contact our Strategy practice.
We have extensive, international experience advising both management teams and investors in fast-growing business services providers, including:
Want to learn more about how we can help you grow?
Henderton acts as independent, trusted advisors to innovative companies throughout their growth lifecycle.
Get in touch and understand how we can help you achieve your objectives.
