A foreign company’s entry to the Russian market usually involves significant difficulties associated with the specificity of advertising channels operating in Russia as compared to the global ones, and there is a serious need to find out people that can effectively manage them.
When a company’s business is not based on complicated technological processes, the most effective way to enter the market is the purchase of a Russian analogue which already has a well-known client base in Russia and is run by a well-developed team with thorough understanding of the Russian market segment. If the transaction does not take place in the form of cash-out, but only as a cash-in with an option for management to sell its share in the Russian company as an international strategist for the implementation of agreed KPIs, then the transaction becomes most effective for a foreign company due to the fact that investments that would have been spent on business development from scratch will now be properly utilized by a motivated Russian team with experience in the required market segment.
Business: $200M revenue per year, more than 10 thousand global clients.
Deal: Search and purchase of a Russian company for a quick entry into the Russian market.
Deal Industry: Internet
Deal Type: Search for M&A