Acquisition Target Search Case Study: Industrial Machinery

Our client wanted to identify the right Chinese target to acquire products for local market and expand capacity.

Acquisition Target Search Case Study: Industrial Machinery

Our client wanted to identify the right Chinese target to acquire products for local market and expand capacity.

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Situation

  • The Client, a global industrial group, wanted its machinery business to acquire a product portfolio targeting the local market and expand China production capacity to supply global markets and increase market share in China.
  • The Client wanted to compare the costs and benefits of setting up its own operations versus acquiring an established Chinese company.

Approach

  • Worked with Client to define the qualities and requirements of an “ideal” acquisition target.
  • Compiled a preliminary Target list containing all potentially interesting targets (>50 companies).
  • Face-to-face, senior-level management interviews and site visits with all high-priority targets.
  • Presented the Client with profiles of the 10 targets that most closely matched the Client’s criteria. 

Result

  • The most attractive Target (a company with a brand targeting the ‘affordable market’ and nationwide distribution channels) was an attractive alternative to a Greenfield plant.
  • At the time of the search the Target was not interested in an acquisition. However, our Client maintained contact and, when market conditions and valautions changed, was able to take a majority stake in the company at an attractive valuation.

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Client Services

Our advisory services support clients when selling or buying a business, establishing joint ventures and partnerships, securing financing, valuing a business, or navigating other M&A related issues involving China and Southeast Asia.

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Sell-side Advisory

We manage global sales processes to help clients secure maximum value when selling a company or divesting a business.
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Buy-side Advisory

We help client identify, screen, initiate, and convert acquisitions that are synergistic with their strategies.
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Strategic Advisory

We provide strategic advisory services that help clients define the best path before launching specific M&A initiatives.
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Partnerships

We help clients identify and structure joint ventures, strategic partnerships, corporate venturing models, minority stakes, etc.

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