Commercial level means the action of targeting new clients (customers) in new segments or new markets. This may take the shape of restructuring or expanding the present structure (set up) of operations of our client. Through such, Perfect Access will draw new models such as partners, distributors, licensees, franchisees , agents, representing agencies or the business own local international branches.
In corporate development we focus on the financial and the legal levels of the business. Such level of development is about mergers of acquisitions (M & A), joint ventures, direct equity investment and strategic alliances. Such elements will be in closed touch with contract law, fiscal law, social law, corporate finances, change management, culture management and portfolio analysis.
As one of the leading investment companies in the region, Perfect Access provides a lot of business services provided through our networks all over the world. Investments in those opportunities have required the management to create various types of business models through which we can actualize an investment opportunity in the most suitable business structure, especially in those where partners are taking place as valuable strategic partners.
We considers all possible possibilities that may face the investment opportunities whenever we rank any of them as a solution to a market need or as a contribution to our clients’ investment objectives in the target markets. Generally, we find it justified if the opportunity:
1) Applicable to our client’s strategic plans and investments policies.
2) Serves or introduces some other opportunities in the target markets.
3) Provide a solution to present saturated market.
4) The clear need of the target areas.
5) Viability of the opportunity
6) Availability of required resources such as finance, management, knowledge …
7) Has clear set of objectives that drive such development level.
8) Could classified under one of client’s strategic business models
In many opportunities, a client contracts a third party that offers intermediation services between his businesses and some other parties. The intermediary acts as a conduit for services offered by the business. Typically, the intermediary offers some added value to the transactions that may be conducted.
Usually, Intermediary does not represent the business or be authorized to act as a representative. He will invest his knowledge about the business to find a target group for this business and he will obtain for his efforts, a particular reward (commission, fixed amount, a share in the opportunity provided, etc…)
We define this as a “business model” that we develop a structure of relations between the client and intermediaries all over the world, who have been able to provide a lot of viable resources to a business success, and many of those intermediaries have developed a more sophisticated relations with each other for the benefit of our clients as joint ventures or even an actual partnerships when they meet the structured criteria of selection.
In our business outreach and networking, Perfect Access support its client who wants to develop the agency model as an exchange of knowledge and know how between him and the potential partners. Brands, products, models, services are offered always to be delivered as agencies to potential partners, and we always focus to choose the agencies where we expect to find better markets for our clients as agents.
We understand agency business as “the agent acts for, or in the place of another, by an authority provided by the first to the agent; an agent is the one who is entrusted with the business of another”.Agent will have specialized qualifications and capacities necessary to practice the obligations assigned. At the same time, agent means any business supposed to act in the interests of the principal, or he is the one who are presents the interests of a foreign party within the agent’s territories.
Assigning an agent for the business in any region will include, but not limited to, the following:
1. Agent’s guidebook.
2. Typical agent contract.
3. Clear obligations assigned to agent.
4. Clear list of support types provided by the brand’s owner to its agent.
5. Full knowledge of the area where an agent is assigned.
6. Well formulated reporting system between the brand’s owner and agent.
In many cases, clients ask us to manage the establishment of an operating branch for a foreign company managed by the client himself. In general, is an expanding of the present geographical coverage of a company outside the area where the business is headquartered. In branches, a company (our client) offer the same as the headquarter .As a result to technological sophisticated management and services aids, branches have become smaller since many services, products, could be managed and obtained from headquarters as if clients are there, but in front of a different desk.
Branches will totally express and represent the headquarter, will be responsible for all results, and be covered by the headquarter in terms of expenses, technology, know how, prints,….etc, though sometimes they work independently depending on the size of operations covered by the branch.
For us, starting a branch will mean a foreign direct investment (FDI) in the targeted region. Of course, the equity employed will depend on many factors, especially the purpose objectives of the branch in a particular region or area. However, when it is said as a branch, this branch will have its own:
3. Balance sheet
4. P&L statement
5. Audited fiscal report
6. Shareholders registration
7. Bank account
8. Independent activities (though it might be oriented or directed by the headquarters).
Non-operating branches of are being started to perform some particular objectives that are indirectly support the company general strategies and objectives in other regions. Non-operating branches are mainly performing the following:
1. Promotion: It will promote the business (headquarters and operating branches) in the area or region where the branch is located, or even attract strategic partners for present and potential opportunities.
2. Coordination: Management of the branch will coordinate all public relations, or operations relations of the HQ with official and private entities in the geographical area of the branch.
3. Research: The branch will conduct continuous researches on the markets or business opportunities in the region where the branch is located.
4. Facilitator: The branch will facilitate any required services provided to HQ. In addition to information, it will facilitate traveling, contacts, meetings, etc.
5. Opportunities: By practicing the mentioned duties, the branch will prepare the initial requirements (steps) necessary for a potential opportunity. (of course, coordinating with head office) such are :
• Classifying and analyzing information and data collected.
• Coordinating with official entities.
• Initial meeting with related partners and stake holders.
• Preparing for signing formalities.
Non operating branch will be totally oriented and controlled by HQ in terms of expenses, prints, strategies, policies, employments, etc. However, such will not prevent the fact that the branch manager is to one of the best professional (experienced, senior staff member) who is supported by a carefully selected supporting team.
Big companies have many plans to expand their operations out of its HQ area by having joint ventures with pre-qualified individuals or businesses. They recognize that such joint ventures will mean purposed partnerships under some agreed conditions, depending on the venture’s nature, duration, returns, partners involved, etc…
Our services to create those joint ventures can be for one specific project only (where we call it consortium), or a continuing business relationship. We encourage the joint ventures even if the ratios of capital, time devoted; efforts provided are different between the two parties.
In a joint venture locally or abroad, many factors are to be considered by our clients such as Capital Ratios, Duties and Obligations of each party, Shares of each party, Decision making conditions, Profit distribution, Management policies, Accounts control, Loss considerations, Legal authorities among partners, Communications and documentation system
Strategic allies in different geographical areas are another type of geographical coverage outside the territories of companies’ business headquarters, though it may be done, under some circumstances, in the same area.
A strategic ally is the person, company, official entity, holding group, bank, agency and any other entity that may contribute to achieving the business targets or objectives in a particular area of operations. Further, a strategic ally may contribute to operations conducted in his own area and/or in other areas where a company has operations (such as providing know-how, technology, finance, raw materials labor….etc)
At Perfect Access we do our best to find the best strategic allies to our clients. We will look for a strategic alliances in a particular area when management feels that it has some benefits in that area, but some local parties are need to support obtaining the benefits targeted. Strategic alliances may provide one or more of the following supporting tools to client and his operations: Logistics, Technology, Finance, Business opportunities, Know-how, Official facilities, Partnership, Information, Promotion, Legal support, Consultancy, Marketing activities.
Strategic alliances of our clients are not randomly selected: it must be done in accordance with a pre-defined and well-developed set of criteria. Such criteria will be based to the business objectives, strategies, plans, policies and structure of operations. However, the following set if criteria may help for a better selection:
1. Ally must be a good and solid knowledge in the field of alliance.
2. He must be of good communication skills and capacity of performance.
3. His existence must be supported by all supporting legal documentations.
4. The background and experience in the field of cooperation must be documented and proved clearly
5. Will accept the standard agreement prepared by the group for such purposes.