SaaS platform international expansion

Market entry strategy and entity establishment framework for a US technology group entering European and Asian markets.

Technology Global International Expansion
2023 - 2024 14 months

Client Profile

Our client is a US-based enterprise SaaS company with a market capitalisation of $8B, providing cloud-based workforce management solutions to Fortune 500 clients. The company had established strong market position in North America and sought to expand into European and Asian markets to capture growing demand for digital transformation tools.

With ambitious growth targets of achieving 40% revenue from international markets within five years, the client required a comprehensive market entry and entity establishment framework that would enable rapid market access while maintaining operational efficiency and regulatory compliance.

The Challenge

The technology client faced complex challenges in their international expansion:

  • Market prioritisation: Determining optimal sequence of market entry across 12 potential European and Asian jurisdictions with varying regulatory complexity, market size, and competitive dynamics.
  • Entity structure design: Establishing legal entities that balance tax efficiency, operational flexibility, regulatory requirements (including GDPR compliance), and future structural optionality.
  • Transfer pricing: Developing intercompany pricing frameworks for IP licensing, service arrangements, and cost-sharing that withstand scrutiny across multiple tax jurisdictions.
  • Speed to market: Completing entity establishment and operational readiness in priority markets within 6-9 months to meet board-approved growth targets.

Our Approach

We designed and implemented a phased market entry programme:

Phase 1: Market Assessment & Prioritisation (2 months)

Conducted detailed market analysis across 12 potential jurisdictions, evaluating market size, regulatory environment, competitive landscape, talent availability, and tax efficiency. Developed scoring model resulting in prioritisation of UK, Germany, Netherlands, Ireland, Japan, and Singapore as initial expansion markets.

Phase 2: Structural Design (3 months)

Designed entity structure with Irish holding company (tax-efficient IP ownership), regional operating entities in UK, Germany, Netherlands, and Asia-Pacific hubs in Singapore and Japan. Developed transfer pricing documentation and intercompany agreements aligned with OECD guidelines.

Phase 3: Entity Establishment (6 months)

Coordinated with local counsel to establish 7 legal entities across 6 jurisdictions. Managed bank account opening, registered office services, and initial regulatory filings. Implemented pan-European payroll and HR infrastructure through employer of record partnerships in non-entity markets.

Phase 4: Operationalisation (3 months)

Established group-wide governance framework, implemented consolidated reporting, and trained local finance and legal teams. Developed standard operating procedures for future market entry following the proven playbook.

Outcomes

6
Markets entered within 14 months
7
Legal entities established
$2.4M
Establishment cost vs. $4.2M budget
38%
International revenue achieved in Year 2

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