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1. Market Entry Strategy and Financial
Modeling
Learnings From the Consulting World
‐By Tarun Mehra
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2. Problem Statement
“Identify growth opportunities for a European medical devices company in Latin
America”
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3. Types of ‘Problems’
Wicked
Problems
Complex
Problems
Clarity on
Potential
Answers
Tame
Problems
- Well defined problem
- Clear solution reachable in a
linear fashion using
straightforward, reductionist,
repeatable, sequential
techniques
- E.g. – CAGR calculation,
binomial equation, dy/dx, etc.
‐ Non‐linear, difficult to understand
‐ Solutions can lead to other
problems and unintended
consequences
‐ E.g. ‐ fluid dynamics, travelling
salesmen scheduling, polynomial
differential equations, etc.
Clarity on Problem Definition
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‐ Ambiguous or unknown goals
‐ Means‐ends relationships poorly
understood. Interconnected.
‐ ‘No stopping’ rule
‐ E.g. – Poverty, Crime, Education,
Water, Hunger, Social issues, etc.

4. What Are We Dealing With?
“Some problems are so complex that
you have to be highly intelligent and
well informed just to be undecided
about them.”
‐ Laurence J. Peter
““Successful problem solving requires
finding the right solution to the right
problem. We fail more often because we
solve the wrong problem than because
we get the wrong solution to the right
problem”
‐ Russell Ackoff
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5. A Potential Analytical Approach
International
Expansion?
Emerging Markets?
Our Growth Vision?
Therefore
Which Countries Are Most
Attractive? In What
‘Segments’? Hypotheses?
Validate
Where Should We
‘Play’?
Therefore
‘Mode of Entry’?
Target Player? Go‐to‐
Market? ROI?
Validate
How Will We
Succeed?
Therefore
Org‐Structure?
Management
Plan? By Country?
Validate
What Capabilities
Will We Need?
Strategic Choices
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Tactical Choices
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6. Where Should We Play?
20+ Countries in Latin
America
Detailed Analysis Of …
Macroeconomic
Attractiveness
Analysis
20+
Countries
Industry
Attractiveness
Analysis
8‐10
Countries
Deep‐Dive on
Attractive Markets
3‐4
Countries
Specific ‘Growth
Alternatives’ for
Selected Countries
• Macro parameters
• GDP/ Growth, Business Confidence Index, PEST
• Others
• Market Size/ Growth
• Regulatory Landscape;
• Customer Overview (B2B, B2C, Third‐Party,
Insurance, etc.)
• Competitive Landscape (Fragmented/ Consolidated?
Presence of Global Players?)
• Value Chain Analysis (Distribution Models?)
• Market Trends; Recent Deals/ Trends
Country #1  Potential Acquisition C
– Company Details, Management Team? Potential Business/ Market/
Financial Synergies with Potential Targets? Review of Financials and Deal‐
Multiples? Potential Deal‐Size? At Premium/ Discount?
Hypothetical 
Country #2  Organic Growth + Distributor Partnership
Detailed Analysis of
Selected ‘Growth
Alternatives’
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Where Should We
‘Play’?
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7. Analysis of ‘Growth Alternatives’?
Brazil
Growth
Alternative
Financial
Analysis
Mexico
• Inorganic Growth
• Acquire Company X
• Define Terms/ Boundaries
• Organic Growth
• Partner with Distributor Y
• Define Terms/ Boundaries
• ‘Incremental’ Cost‐
benefit?
• Initial Investment? Deal‐
size? Multiples?
• Ongoing Investment?
• New Immediate Sales?
Sales Growth?
• ROI? Payback‐Period?
• Cash‐flow? Sequencing of
Investment?
• Scenarios? Robustness?
• ‘Incremental’ Cost‐
benefit?
• Investment? Product‐
Licensing Fees/ Timeline?
• New Team Size/
Structure? Hiring? Sales
Targets?
• Sales Forecast? Sales
Growth?
• ROI? Payback‐Period?
• Cash‐flow? Sequencing of
Investment?
• Scenarios? Robustness?
Evaluate Against Investment Appetite
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How Will We
Succeed?

8. Next Steps …

Share Following with the Board –
 Strategic Choices
 Selected Growth Alternatives
 Financial Analysis, Cost‐Benefit Plan and Recommendations


Facilitate Decision‐Making
Initiated Discussions with External Stakeholders, e.g. –
 Potential Target’s Management Team in Brazil
 Selected Distributor in Mexico




Finalize deals
Revisit Earlier Financial Plan, Compare with ‘Actuals’, Adjust and Keep Track
Take Action on Tactical Choices Made Earlier
Track Progress
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9. Why Financial Modeling?
Financial Modeling is an expertise that helps
you to:
•Design & Structure Financial Problems &
translate them in Excel
•Gain the ability to produce models quickly
•Implement Sensitivity Analysis
•Learn Charting Techniques & Create
Dashboards
•Quickly audit robust Financial Models
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What EduPristine has to Offer you in Financial
Modeling Program:
•Extensive Classroom Training by Industry Experts
•20+ Hrs Exclusive Online Training
•Earn CFA Credits :CFA Institute has approved this
program, offered by EduPristine, for 20 CE credit
hours.
•Earn GARP Credits: EduPristine's program on
"Financial Modeling" qualifies for 10 GARP CPE
credit hours.
•Personal Doubt Clearance: Every Participant can
avail 30 mins of one‐on‐one doubt clearing
session.
•24X7 Access to Discussion Forums
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10. Thank You !
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