Industrial Machinery: China Target Search

Client

• Machinery business of a global industrial group.

Challenge

• To strengthen its China presence, the client sought to expand local product offerings and production capacity. The strategic question was whether to establish greenfield operations or acquire a domestic player with market-ready products and distribution capabilities.

Approach

We designed and executed a structured target search and evaluation process:

• Criteria Definition: Partnered with the client to articulate the profile of an “ideal” acquisition target, covering product fit, brand positioning, capacity, and distribution reach.
• Comprehensive Screening: Compiled and assessed a universe of more than 50 potential Chinese targets across priority segments.
• Target Approach: Conducted senior-level interviews and site visits with shortlisted companies to validate capabilities and strategic fit.
• Strategic Options: Presented the client with in-depth profiles of the most compelling targets, benchmarked against greenfield alternatives.

Impact

• The client proceeded with a majority acquisition of the top-ranked target identified and introduced through our process — an acquisition that allowed the client to leapfrog several years of organic build-out by securing immediate access to manufacturing capacity, brand, and nationwide distribution in China.
• In the medium term, the combined scale, enhanced technology, and improved cost structure drove a clear increase in margins and stronger overall returns.
• Over time, the acquisition supported accelerated revenue growth, expanded market share, and anchored the client’s ability to export into emerging markets under a dual-brand strategy.