How to lead successful mergers and acquisitions (M&A) and partnerships in China ? This presentation provides insights based on a finance book published in 2015.

1. Successful Mergers & Acquisitions in China
December 2015

2. Comments :
• Based on a 2 year research led by a team
of M&A professionals. An early version was
published in French (2013, Séfi), then a new
international edition was released in English
with World Scientific (2015)
• The book is supported by leading institutions
including Maverlinn, Mazars, Willis Towers
Watson, KRS and RBSC*. They not only
provided support but also key insights for the
research
• Aside explaining what is M&A in a Chinese
context, the book focuses on identifying key
factors for leading successful acquisitions
• The research initially set for an international
audience also received a warm welcome from
Chinese practioners
Mergers & Acquisitions and partnerships in China is a new
finance book published in English by World Scientific
Comments :
• Based on a 2 year research led by a team
of M&A professionals. An early version was
published in French (2013, Séfi), then a new
international edition was released in English
with World Scientific (2015)
• The book is supported by leading institutions
including Maverlinn, Mazars, Willis Towers
Watson, KRS and RBSC*. They not only
provided support but also key insights for the
research
• Aside explaining what is M&A in a Chinese
context, the book focuses on identifying key
factors for leading successful acquisitions
• The research initially set for an international
audience also received a warm welcome from
Chinese practioners
« To be successful in China over the long run
requires developping some widespread, solid and
deep roots in the Chinese business environment. »
* for the French edition.

3. The author’s team is composed of an international college of
seasonned professionals and M&A experts
Forensic Legal Finance HR Accounting
Mergers & Acquisitions
Frank Zheng
Stéphane Luo
Olivier Coispeau
Josephine Chow
Thierry Labarre

4. The book provides a comprehensive and clear toolkit for
leading successful acquisitions in China
Critical transaction topics are covered :
• Preparing for external growth in China
• Defining the framework for the acquisition
• Managing acquisition risks
• Negotiating effectively
• Closing the transaction
• Seven cases of M&A and partnerships in China,
including: Nestlé, CAT, ZAP, Coca-Cola, Nycomed,
SEB and Airbus
Key steps for M&A in China Critical transaction topics are covered :
• Preparing for external growth in China
• Defining the framework for the acquisition
• Managing acquisition risks
• Negotiating effectively
• Closing the transaction
• Seven cases of M&A and partnerships in China,
including: Nestlé, CAT, ZAP, Coca-Cola, Nycomed,
SEB and AirbusLeadership
« We highlighted two key success factors : (i) the
necessary quality of the relationship with the seller,
and its business ecosystem, and (ii) the need to have
a long term perception of time. »

5. The book advocates for an integrated M&A approach with an
emphasis on selection of best option for maximum impact
Emphasizes multicultural strategic
finance as a distinctive footprint,
meaning the need to integrate
M&A, culture and strategy
• Best final option not necessarily the best initial option after careful review and DDs
Points toward impact M&A and also
advise on preparation and
integration to optimize success
Emphasizes multicultural strategic
finance as a distinctive footprint,
meaning the need to integrate
M&A, culture and strategy

6. The secret for successful M&A in China is a good upstream
and downstream preparation
1. Upstream preparation
M&A strategic group
2. M&A execution
Trusted expert team
Expert M&A team
Trust & empowerment
for fast action
Clear external growth
strategy
1 Strategic M&A is a three step process
1. Upstream preparation
M&A strategic group
2. M&A execution
Trusted expert team
3. Integration
Transition management
Expert M&A team
Trust & empowerment
for fast action
Early identification
of acquisition benefits
Smart transition
management to leverage
acquisition
2
3

7. Deal story lineDeal background
“Nestlé" M&A Case : Nestlé (Swiss) – Hsu Fu Shi (China)
• In 2011, Hsu Fu Shi announced a possible joint
venture with Nestlé in China
• MOFCOM approves the USD 1.7 billion
acquistion of 60% of Hsu Fu Shi by Nestlé
• Nestlé can now rely on its new partner to
develop a stronger presence in the China retail
market
• Hsu Fu Shi also contributes two production
facilities in Guandong and Henan to develop
new products with Nestlé for the local market
• Nestlé based in Vevey (Switzerland) is a world
leader in the food business with then a limited
market share in confectionary market in China
• Hsu Fu Shi is a hundred year brand, willing to
find the relevant partner to accelerate its growth
on the confectionary market in China and beyond
The transaction was prepared in the very details and smoothly executed
• In 2011, Hsu Fu Shi announced a possible joint
venture with Nestlé in China
• MOFCOM approves the USD 1.7 billion
acquistion of 60% of Hsu Fu Shi by Nestlé
• Nestlé can now rely on its new partner to
develop a stronger presence in the China retail
market
• Hsu Fu Shi also contributes two production
facilities in Guandong and Henan to develop
new products with Nestlé for the local market
• Nestlé based in Vevey (Switzerland) is a world
leader in the food business with then a limited
market share in confectionary market in China
• Hsu Fu Shi is a hundred year brand, willing to
find the relevant partner to accelerate its growth
on the confectionary market in China and beyond

8. The book has been praised for its clarity and practical
contribution to smoother M&A operations in China
« The research is exceptionnal in many aspects »
Jean-François Di Meglio, President Asia Centre
« This is a major contribution »
Pr. Seamus Grimes, Emeritus Professor, Whitaker Institute, NUI Galway
« A brand new framework and in-depth analysis »
Dr. Wang Duanyong, Shanghai International Studies University
« This book provides essential answers »
Pr. Yves Dolais, Emeritus Dean of Angers Law and Economics University
« The research is exceptionnal in many aspects »
Jean-François Di Meglio, President Asia Centre
« This is a major contribution »
Pr. Seamus Grimes, Emeritus Professor, Whitaker Institute, NUI Galway
« A brand new framework and in-depth analysis »
Dr. Wang Duanyong, Shanghai International Studies University
« This book provides essential answers »
Pr. Yves Dolais, Emeritus Dean of Angers Law and Economics University
Acquired by many university libraries inc. Harvard, HEC, Tufts,
Shanghai, Columbia, Ngee Ann Poly, Temasek Polytechnic,
Georgetown, Hong Kong, Québec, Duke, NUI, Concordia, California,
Nevada, UT Sydney, Spalding, Marshall, Indiana, Butler, Bethel,
Bremen, Vincennes, Austin, Nebraska, Memphis, Rogers,
Washington ...

9. Leading a world of change, together