A European company seeking to make an acquisition in China
Starting issue
- A leading European industrial goods (mechanical parts) company wishes to strengthen its market position through the acquisition of a smaller but fast growing competitor in the South of China.
Methodology
- Initial assessment of the feasibility of the acquisition
- Evaluation of value of the target and possible terms
- Identification of key post acquisition actions
Advice and results
- Negotiation of a full acquisition
- Financial structuring to avoid direct and off-balance sheet liabilities
- Former owner remained as a stakeholder within the new entity, bringing invaluable expertise for the development of the business