27th August 2014
MGI Europe members from Hungary to Scandinavia have been successfully working together to support a growing SME client as they expand operations overseas.
Member focus on BPO Audit Tax, Hungary; Revideco AB, Sweden; Auditors Network Finland Ltd; Hallerup & Co., Denmark; MGI Revisjon Asker DA, Norway.
UK-based SME and manufacturer of contact lenses and aftercare solutions, became a client of MGI member firm BPO Audit Tax when they were just a 3 person family business looking to set up operations in Hungary.
László Killik, partner and CPA at BPO provided accounting and payroll services, as well as introducing the company to a local finance specialist and a lawyer to help the client get “very competitive financing and a state subsidy”. He adds: “The factory setup went well in Hungary and now they employ more than 200 people.”
Exposure to MGI helped build client confidence
In 2011 BPO celebrated their 10 year anniversary, the same year they hosted the MGI European Area Meeting in Budapest. Managers from the SME client were invited to the event and this proved to be beneficial to both sides. The client saw the international capabilities of the alliance and MGI firms had the opportunity to meet a client with potential business development.
László notes that “Our client had no idea that MGI was so big. Meeting other member firms face-to-face proved to be very important. Quite simply they realised that they could tap into other firms within the alliance - firms they could trust through our existing relationship.”
“A few months later, or maybe a year, they asked me if I could recommend someone in Sweden. And yes I could. Erik [Emilsson, MGI Chairman and Managing Partner at Revideco AB, Stockholm] provided them a very good service and they were very satisfied with MGI quality,” explains László . “They’re still a very valuable client of ours and I hope we can serve them for a longer period.”
Astrid Jansson from Revideco AB, Sweden, explains: “Revideco assisted the Group when it was setting up its Swedish subsidiary and since it is the sales organisation for the Group in the Nordic area, it has to handle tax issues, PAYE, VAT, labour legislation, and more - not only in Sweden but also in Denmark, Finland and Norway, and this is where the benefits of the MGImembership really shows.
“The MGI firms in the Nordic area have a high level of contact, and we know each other very well. Uncomplicated and effective communication provided all services necessary in the start-up and ongoing. In fact, the appointment of one of our senior consultants to Financial and IT controller of the Swedish Company is a very good testimonial of our services.”
Collaboration provided a ‘better alternative’
The UK based SME had originally approached one of the Big 4 to assist with their expansion plans overseas but found that the solution they came up with was not suited to their business. They were not a multinational business at the time and were not looking for a multinational solution.
László says “They liked us because we were similar to them. They started out as a very small family business and this made working together much easier. We understood their business, their issues. We were able to build very strong relationships and because of this, they could rely on us.”
Expansion to 5 MGI member firms across 5 territories
From Hungary and Sweden to Finland, Denmark and Norway, MGI members were able to help in a way that many of the larger accountancy firms couldn’t.
Päivi Sten from Auditors Network Finland Ltd. says “Whilst the Hungarian plant employs 200, in Finland there is just a single salesperson. We help ensure their salary is paid on time andfulfill all requirements for tax authorities and insurance companies according to Finnish legislation.”
It’s a similar story in Denmark and Norway, where Hallerup & Co in Copenhagen and MGI Revisjon Asker DA in Oslo respectively perform payroll services - another small but vital cog that enables MGI’s members to deliver a complete international service.
Formerly a UK based SME, the client has grown to become a global manufacturer of contact lenses and aftercare solutions with offices in 10 countries and products sold in over 50 countries worldwide.
Advice for other MGI members:
- Face-to-face contact with members at MGI meetings is vital to give you the confidence of referring business.
- Often a collaboration with fellow members can provide a better alternative for a growth client.
- Use the international reach of the MGI network to your advantage - actively promote your international credentials and services to all clients or prospects even if they don’t have an immediate international requirement.
To speak to any of the firms involved, you can find contact details on the MGI Worldwide directory member profile pages: BPO Audit Tax, Revideco AB, Auditors Network Finland Ltd, Hallerup & Co., MGI Revisjon Asker DA