The slides include data analysis of tech M&A activity in China from 2013 to 2017. Most of China's M&A activity today is outbound, but there are a flurry of Chinese tech-savvy start-ups sprouting up in recent years, attracting investment and acquisition. This presentation also provides ideas for M&A advisory companies about how to target tech companies in China. Case study and marketing tips are given.
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Tech M&A Activity and Marketing in China
1. M&A Activity and Marketing in China
Deal Analysis | Case Study | Best Practices
Evelyn Chen
2018-03
2. 01. Deal Analysis
03. Conclusion
04. What We Can Do
M&A Activity of Chinese Buyers (2013-2017)
B2B Marketing in China
Best Practices of Marketing in China
C O N T E N T
02. Case Study
Duff & Phelps’ Marketing Efforts
3. M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
China embarked on a global shopping spree in 2016, more
than doubling, to almost $200 billion, its 2015 announced
deal value. About two-thirds of China’s M&A activity today is
outbound, with Europe and North America emerging as the
most attractive target regions.
China goes shopping
4. 13
9
8
5
4 4 4 4
Alibaba SpeedCast
International
Baidu PCCW Global Ctrip.com Huawei Lenovo SpeedCast Limited
[TA Associates]
NumberofDeals
Top Chinese Buyers by Number of Deals (2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
5. 8.57
7.7
6
4.44
3.7
3.43
2.91 2.8
2.3
1.9 1.85
Tencent Qihoo 360 HNA Group Ocean
Management
Alibaba Hon Hai
Precision
Industrial
Lenovo GO Scale
Capital
Tsinghua
Holdings
Capitalhold Baidu
DealValue($Billion)
Top Chinese Buyers by Disclosed Deal Value (2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
6. 74, 20%
299, 80%
Strategic Buyers vs. Financial Buyers (2013-2017)
Deals made by Financial Buyers
Deals made by Strategic Buyers
11 10
18
21
14
37
59
69
85
49
2013 2014 2015 2016 2017
Strategic Buyers vs. Financial Buyers (2013-2017)
Deals made by Financial Buyers Deals made by Strategic Buyers
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
7. 13
9
8
5
4 4 4 4 4
Alibaba SpeedCast
International
Baidu PCCW Global Ctrip.com Huawei Lenovo SpeedCast
Limited [TA
Associates]
Tujia.com
NumberofDeals
Top Strategic Buyers by Number of Deals (2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
8.57
6.00
3.70 3.43
2.91
2.30
1.85 1.73 1.46 1.16
Tencent HNA Group Alibaba Hon Hai
Precision
Industrial
Lenovo Tsinghua
Holdings
Baidu Ctrip.com JD.Com CITIC
Telecom
$Billion
Top Strategic Buyers by Disclosed Deal Value (2013-2017)
8. 3
2 2 2 2
Digital Domain IBID Shanghai
Zhongji
Investment
Tsinghua
Tongfang
Tsinghua
Holdings
NumberofDeals
Top Financial Buyers by Number of Deals
(2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
7.70
4.44
2.80
1.90 1.80 1.78
1.52
Qihoo 360 Ocean
Management
GO Scale Capital Capitalhold JAC Capital Tsinghua
Holdings
Giant
Investment
$Billion
Top Financial Buyers by Disclosed Deal Value (2013-2017)
9. 0
10
20
30
40
50
60
0
50
100
150
200
250
300
2013H1 2013H2 2014H1 2014H2 2015H1 2015H2 2016H1 2016H2 2017H1 2017H2
NumberofDeals
MedianDealValue($Million)
M&A Activity by Chinese Buyers (2013-2017)
Median Deal Value Number of Deals
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
10. 0
2
4
6
8
10
12
<$20M $20M-$50M $50M-$100M $100M-$250M $250M-$1B >$1B
NUMBEROFDEALS
Number of Deals by Transaction Size (2013-2017)
2013 2014 2015 2016 2017
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
11. 7
18
20
32
17
6 6
15
28
11
34
42
49
43
34
1 3 2 3 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
America Europe Asia Australia
NumberofDeals
M&A Targets of Chinese Buyers - Geography (2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
12. 5
17
19
30
14
2013 2014 2015 2016 2017
NumberofDeals
US Companies Acquired by Chinese Buyers (2013-2017)
M&A Activity of Chinese Buyers (2013-2017)
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
13. Duff & Phelps is a middle-market M&A advisor, advising public corporations, financial sponsors, family-owned
businesses and other private companies in middle-market buy side and sell side M&A transactions globally,
with regional teams situated in Canada, UK, Germany, Ireland and China.
Case StudyDuff & Phelps’ Marketing Efforts
14. Top Financial Advisors for Chinese Companies
(M&A Targets) 2013-2017
01. Section Title here 02. Case Study 03. Section Title here 04. Section Title here
9
7
4
2 2
Duff & Phelps Morgan Stanley J.P. Morgan Goldman Sachs Credit Suisse
NumberofDeals
Top Financial Advisors for Chinese Sellers (2013-2017)
15. Deals Advised by Duff & Phelps
Announced Acquirer Target Target Abstract Target Vertical Markets Val./Rev. Total Deal Amt.
Dec 2016 Wiseman International KongZhong Mobile & online videogame developer General 1.6 $299,000,000
Oct 2016 Ocean Management
Holdings
Qunar Cayman Islands Chinese travel reservations website Travel 6.8 $4,440,000,000
Sep 2016 Beijing Shiji Information
Technology
eFuture Information
Technology
Chinese SCM systems integration General, Retail/Wholesale 1 $33,672,000
Dec 2015 PE investment
consortium/ iDreamSky
iDreamSky Technology Chinese mobile games publisher Games, General $608,694,000
Oct 2015 Intel VIA Telecom Smartphone processor & chipset assets Computers & Electronics
Jun 2015 Pegasus Investment
Holdings
China Mobile Games and
Entertainment Group
Chinese mobile games developer Games, General 3.4 $688,815,000
Apr 2015 Perfect Peony Perfect World Chinese online videogame developer Games $840,200,000
Mar 2014 Giant Investment Giant Interactive Group Chinese online game developer Games 5 $1,521,000,000
Dec 2013 Trunkbow International
Holdings Management
Trunkbow International
Holdings Limited
Chinese mobile value-added systems Telecommunications-Wireless 2.6 $23,591,000
16. Case Study: Duff & Phelps
Marketing and Communications
Events & Webcast
Publications / Blogs
Websites
Instant Messaging
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
Duff & Phelps 道衡
17. Case Study: Duff & Phelps
Events
China M&A Forum 2016
AVCJ and Mergermarket are proud
to present the China M&A Forum,
which looked into M&A in China
and its growing importance in the
global M&A market place.
China 13th Five Year Plan &
Foreign Investment
Environment Roundtable
Duff & Phelps Director Neville Lam
was an expert speaker at the
Dissecting Value: Differences in
Valuation Practices in Cross-border
M&As roundtable event in Beijing.
The 2017 Duff & Phelps IP
Value Summit
Attendees can customize their
agenda by selecting sessions from
the following topics: Valuation and
M&A, Tax and Transfer Pricing, and
Litigation and Licensing.
Pagemill Partners Technology
M&A Reception
Discuss European software M&A
trends, and compare and contrast
experiences with private equity
versus strategic buyers of software
businesses.
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
Events coming up: China Healthcare Investment Conference (Mar 2018) | China M&A Forum 2018
18. Example: Oil and Gas Webinar: M&A Activity and Trends in Midstream and Downstream Energy Markets
This webinar discusses the 2015 oil and gas outlook in the midstream and downstream markets, including North
American and European M&A activity and industry trends.
Topics:
• Oil prices and geopolitics
• Commodity price impact on M&A activity
• Long-term outlook in midstream and downstream markets
Panelists:
• John McNabb, Chairman and CEO, Willbros
• Craig Spurn, Partner and Head of Oil & Gas Group in the Calgary, Canada office of McCarthy Tétrault LLP
• Jim Rebello, Managing Director, Head of Energy M&A, Duff & Phelps
• Paul Teuten, Managing Director, UK M&A, Duff & Phelps
Case Study: Duff & Phelps
Webcast and Videos
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
19. Case Study: Duff & Phelps
Publications/Blogs
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
20. Case Study: Duff & Phelps
Websites
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
https://www.duffandphelps.com https://www.duffandphelps.co.uk
21. Case Study: Duff & Phelps
Websites
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
https://www.duffandphelps.cn https://www.duffandphelps.hk
22. B2B Marketing in China
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
23. B2B Marketing in China
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
• WeChat: All-in-on Social Media in China
• Sina Weibo: Twitter of China
• Tencent QQ: Popular Instant Messaging App
• Toudou Youku: Youtube of China
• Baidu Tieba: A Search Engine Forum
• Douban: Lifestyle Discussion Platform
• Zhihu: The Quora of China
• Meituan – Dianping: The Chinese Versions of Yelp
24. Conclusion
B2B Marketing in China
Financial Conferences and Influencers
Financial influencers can be connected with on
specialized forums and networks. WeChat, the largest
social media platform, is a key way to stay in touch with
prospects and connections.
Quadruple-Check Translations
M&A Translation Guide
Corum M&A Glossary
A Quality Chinese Website
Optimized for Baidu, hosted on a local
server with a .cn domain.
Chinese Office, Advisors &
Communication Tools
SEO on Baidu
SEO is about ranking highly on Baidu, the largest search
engine in China with 70% of all online research
conducted via this platform.
01. Deal Analysis 02. Case Study 03. Conclusion 04. What We Can Do
25. Registering a domain with a .cn suffix will improve
search engine performance in China and prevent the
domain name from being pirated by someone else.
Chinese website & domain
WeChat isn’t only a communication tool. It can be a
channel of choice for many business people, saturating
personal Moments feeds with information.
Wechat private account
Effectively manage SEO and SEM on Baidu, the
dominant search engine in China.
Baidu SEO
The big dates in the Chinese calendar happen at
different times.
Get to know the Calendar
What we can do to better connect with Chinese buyers