International expansion drives revenue growth, reduces risks, and provides access to new technologies. Companies seek markets with lower taxes, cheaper labor, and high demand. However, legal barriers arise—different certification, licensing, and taxation requirements.
For example, CE marking is mandatory in the EU, while FDA approval is required for pharmaceuticals in the US. Logistics challenges also remain:
- Customs duties
- Warehouse organization
- Finding reliable carriers
Comprehensive support minimizes risks associated with these barriers and challenges:
- Legal experts handle registration and protect intellectual property.
- Accountants optimize taxes and maintain compliance with local reporting standards.
- Financial analysts assess costs, develop investment models, and manage currency risks.
Without expert guidance, mistakes can be costly—fines, slowed growth, and market loss.
LFT Advisor provides full legal, accounting, and financial support at all stages of market entry, including in the European Union (EU). We ensure a fast and well-planned expansion process.
Key Market Entry Strategies
A well-structured strategy is crucial for successful market entry. Companies choose different approaches, from exporting and licensing to establishing subsidiaries and mergers. Let’s explore these in detail.
Businesses use five key strategies for international expansion:
- Exporting. The fastest way to enter a market with minimal investment. It requires compliance with customs laws, tax regulations, and logistics. For example, exporting to the EU requires safety standards and CE certification.
- Licensing. Allows local partners to use a company’s brand or technology, reducing financial and legal risks. However, thorough legal due diligence is necessary. In 2023, the global licensing market was valued at $340 billion, highlighting its effectiveness.
- Joint Ventures (JVs) Partnerships with local firms help share resources and ease market entry. However, clear regulation of partners’ rights and responsibilities is essential.
- Mergers and Acquisitions (M&A) Buying an existing business provides quick market access. However, due diligence is crucial—47% of international deals failed in 2022 due to asset valuation and legal risk errors.
- Direct Investment. Establishing subsidiaries or branches offers full control but requires significant investment. For example, Amazon invests billions in European logistics centers to maintain market leadership.
Before entering a new market, companies must consider:
Market research
Product adaptation to local standarts
Compliance with legal norms and certification
Even a promising project can fail without thorough preparation. LFT Advisor provides full support at every stage—from strategy selection to legal, accounting, and financial assistance. We help with market research, product adaptation, certification, and regulatory compliance, making market entry seamless.
Key Steps for Entering the EU and US Markets
Entering the EU market requires meticulous preparation, considering demand, competition, certification requirements, and legal aspects. Mistakes at this stage can lead to financial losses and delays.
- Market Research. Analyzing demand, competition, and economic conditions determines market potential. Without precise data, companies risk low sales or intense competition.
- Product Adaptation. Ensuring compliance with EU regulations is essential. Most products require CE certification, confirming safety and compliance. For pharmaceuticals, medical devices, and veterinary products, the registration process is particularly strict and may take months.
- Legal Compliance. Avoiding regulatory violations requires understanding tax regimes, business registration requirements, and foreign trade conditions. Choosing the wrong jurisdiction can lead to excessive taxation.
- Financial Planning. Calculating all costs—certification, taxes, logistics, staffing, and marketing—reduces risks and prevents unexpected expenses.
LFT Advisor supports companies at every stage of EU market entry, helping minimize legal and financial risks.
