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.
- 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.
- 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.
- 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.
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.