Chinese firms have become more active in mergers and acquisitions since the global financial crisis that began in 2008, as economic distress has thrown up attractive deals around the world. Between 2005 and 2011, the number of China's overseas acquisitions tripled to 177 and jumped five-fold in value to $63 billion.
This paper has come about following a survey of more than 1,600 people across the United States, the United Kingdom and France and extensive discussions with numerous advisors and business leaders from lawyers and accounting consultants with global M&A practices to Chairmen and CEOs such as Li Shifu of Geely.
While the M&A conversion rates do not appear to differ greatly on paper, anecdotal feedback and the results of a survey MSLGROUP conducted among the public in Europe and North America suggest that Chinese companies face much more significant challenges in closing international transactions than those from other territories. Furthermore, Chinese companies pay premium of up to 15 to 20 percent simply because of origin.
Leveraging insights into perception issues China faces in key markets around the world, this report explores the communications issues Chinese companies should address when considering outbound M&A.