Case: Emerging Market Entry Research
Emerging markets provide a high-risk, high-reward space where businesses and early movers can gain a strategic advantage over those who come later. A domestic client was considering expanding its portfolio abroad by investing in one of several European countries but was unsure of how to proceed. Empirical data on new markets are exceedingly scarce and licensing and legal requirements vary greatly across the European market. Identifying and understanding these requirements and how to navigate the risk were critical to successful market entry.
Banyan’s analysts and legal experts quickly worked to detail the unique legal and regulatory landscape of each of the potential target markets for a foreign entity operating internationally. Banyan internally quantified risk in a young market with little empirical data available drawing from lessons of competitors to contextualize the operating environment. One of the key findings was the lengthy timeline required for becoming a licensed operator in the space. Thus, it was critical that we provide both short- and long-term options, ranging from partnerships and acquisitions to registering a local company, in order to satisfy the client’s desired timeline and long-term objectives. In cases where Banyan recommended partnerships or acquisitions, Banyan provided due diligence of potential partners and facilitated contact with companies operating in the market to expedite decision-making.
By performing an analytic investigation of the emerging market and due diligence on potential partners, Banyan delivered an invaluable service tailored to meet and anticipate our client’s specific need. The client received a series of Banyan-produced market reports complete with an analysis of the current market, its future projections, competitor intelligence, and guidance for how to navigate the legal and regulatory landscape in the international sphere while keeping within the desired timeline. Thanks to Banyan’s work, our client was able to focus on their goals without having to navigate the risk of an emerging market alone or jump into the market blind.