"International M&A, Investments and Beyond: Doing the Deal Abroad" - Value Partners' speech at the conference, held in Beijing devoted to Chinese enterprises involved in outbound M&A activities.
This document summarizes Ecolab's financial performance in 2006, including achieving record net sales and improved operating margins, driving 16% diluted EPS growth. Key highlights include exceeding long-term financial objectives of 15% EPS growth and 20% ROBE, increasing the quarterly dividend for the 15th consecutive year, and adopting new accounting standards without impacting income or cash flows. Acquisitions were also made to broaden product and service offerings in line with Ecolab's growth strategy.
This document discusses Ecolab's financial performance in 2000. Key points include:
- Net sales reached nearly $2.3 billion, a 9% increase over 1999, due to business acquisitions, new products, and growth in core businesses.
- Operating income was a record $343 million. Excluding unusual items, operating income rose 12% to $324 million, or 14.3% of net sales.
- Net income was $206 million. Excluding unusual items, net income increased 13% to $198 million, or 8.7% of net sales, reflecting strong operating income growth and a lower tax rate.
- The company continued its trend of strong financial results and
The document provides an overview of an investment bank's performance in 2011. It discusses near record financial results including revenue of $26.3 billion and earnings of $6.8 billion. It highlights the bank's leadership positions in various markets including #1 in global investment banking fees for the third consecutive year. The document also outlines strategic initiatives for 2011 including expanding the international footprint and completing an acquisition. It discusses positioning for regulatory changes and maintaining expense discipline to enable continued investment.
The document summarizes WEG's 4Q08 results conference call. It discusses challenges faced in 2008 from cost increases and currency depreciation impacts not fully passed through. Gross and net revenues grew by 24.9% and 26.8% respectively over 4Q07. Margins declined due to specific temporary factors. The external market grew to 41% of revenues. Cost of goods was impacted by steel and copper prices. A capex program of R$457 million was carried out in 2008 to expand capacity.
This report may bring you great value if your company is planning to enter or further develop in China: include case studies of companies which entered the Chinese market (AT&T, KFC...); success stories, failure stories; Do's & Don'ts to succeed in China from a corporate point of view, Hope it helps! Just let me know: cedric.brusselmans@luruico.com. (realized at Insead during 'Strategies for Asia Pacific' curriculum)
The document discusses strategic approaches for businesses to take advantage of opportunities presented by the American Recovery and Reinvestment Act of 2009 (ARRA). It outlines that traditional responses to increased government spending have often yielded suboptimal results. It recommends a rigorous three-part process: 1) Developing an external market view of ARRA opportunities through in-depth analysis; 2) Conducting an internal capabilities assessment; 3) Creating a coordinated action plan. The document emphasizes the unprecedented scale, complexity, pace and transparency of the ARRA require a systematic strategic approach rather than typical reactive responses.
The document discusses strategic approaches for businesses to take advantage of opportunities presented by the American Recovery and Reinvestment Act of 2009 (ARRA). It outlines that traditional responses to increased government spending have often yielded suboptimal results. It recommends a rigorous three step process: 1) Developing an external market view of ARRA opportunities through in-depth analysis, 2) Conducting an internal capabilities assessment, and 3) Creating a coordinated action plan. The unprecedented scale, complexity, pace, and transparency of the ARRA require a systematic strategic approach focused on analysis, innovation, coordination and execution rather than typical short-term tactical responses.
This document summarizes Ecolab's financial performance in 2006, including achieving record net sales and improved operating margins, driving 16% diluted EPS growth. Key highlights include exceeding long-term financial objectives of 15% EPS growth and 20% ROBE, increasing the quarterly dividend for the 15th consecutive year, and adopting new accounting standards without impacting income or cash flows. Acquisitions were also made to broaden product and service offerings in line with Ecolab's growth strategy.
This document discusses Ecolab's financial performance in 2000. Key points include:
- Net sales reached nearly $2.3 billion, a 9% increase over 1999, due to business acquisitions, new products, and growth in core businesses.
- Operating income was a record $343 million. Excluding unusual items, operating income rose 12% to $324 million, or 14.3% of net sales.
- Net income was $206 million. Excluding unusual items, net income increased 13% to $198 million, or 8.7% of net sales, reflecting strong operating income growth and a lower tax rate.
- The company continued its trend of strong financial results and
The document provides an overview of an investment bank's performance in 2011. It discusses near record financial results including revenue of $26.3 billion and earnings of $6.8 billion. It highlights the bank's leadership positions in various markets including #1 in global investment banking fees for the third consecutive year. The document also outlines strategic initiatives for 2011 including expanding the international footprint and completing an acquisition. It discusses positioning for regulatory changes and maintaining expense discipline to enable continued investment.
The document summarizes WEG's 4Q08 results conference call. It discusses challenges faced in 2008 from cost increases and currency depreciation impacts not fully passed through. Gross and net revenues grew by 24.9% and 26.8% respectively over 4Q07. Margins declined due to specific temporary factors. The external market grew to 41% of revenues. Cost of goods was impacted by steel and copper prices. A capex program of R$457 million was carried out in 2008 to expand capacity.
This report may bring you great value if your company is planning to enter or further develop in China: include case studies of companies which entered the Chinese market (AT&T, KFC...); success stories, failure stories; Do's & Don'ts to succeed in China from a corporate point of view, Hope it helps! Just let me know: cedric.brusselmans@luruico.com. (realized at Insead during 'Strategies for Asia Pacific' curriculum)
The document discusses strategic approaches for businesses to take advantage of opportunities presented by the American Recovery and Reinvestment Act of 2009 (ARRA). It outlines that traditional responses to increased government spending have often yielded suboptimal results. It recommends a rigorous three-part process: 1) Developing an external market view of ARRA opportunities through in-depth analysis; 2) Conducting an internal capabilities assessment; 3) Creating a coordinated action plan. The document emphasizes the unprecedented scale, complexity, pace and transparency of the ARRA require a systematic strategic approach rather than typical reactive responses.
The document discusses strategic approaches for businesses to take advantage of opportunities presented by the American Recovery and Reinvestment Act of 2009 (ARRA). It outlines that traditional responses to increased government spending have often yielded suboptimal results. It recommends a rigorous three step process: 1) Developing an external market view of ARRA opportunities through in-depth analysis, 2) Conducting an internal capabilities assessment, and 3) Creating a coordinated action plan. The unprecedented scale, complexity, pace, and transparency of the ARRA require a systematic strategic approach focused on analysis, innovation, coordination and execution rather than typical short-term tactical responses.
The document is the agenda and slides from Lear Corporation's second quarter 2004 earnings review presentation.
The presentation discusses Lear's strategy of expanding in Asia and with Asian automakers, highlights their growing presence and sales in Asia, and notes that Asian sales have doubled from 2002 to 2004.
It also reviews Lear's solid second quarter financial results and quality improvements, new business wins including a seat contract with Mazda, and product launches scheduled for the second half of 2004.
The presentation provides guidance that Lear's European sales growth will moderate in 2005 while its North American sales are expected to improve that year based on new business backlog.
What are the key dynamics of the current manufacturing sectors in China and how does it differ to other rising manufacturing countries in APAC, such as Vietnam and the Philippines? Has Trump’s call to relocate manufacturing triggered any actions? Are foreign investments in manufacturing sector in target countries growing or declining? What to look for and expect in the near future? How is the supply chain evolving and what are the expected key issues?
How will robotics, automatization, and AI shape manufacturing in the area and what does it mean to foreign manufacturing companies (especially European SMEs) in China?
These are the questions studied in a Future Watch report 2018 Asia: Manufacturing outlook with focus on China, Vietnam and the Philippines.
HSBC The world's leading international emerging markets bank - Asia strategy...QuarterlyEarningsReports2
Sandy Flockhart, CEO of HSBC, provided an Asia strategy update at the Credit Suisse Investors' Conference. He discussed HSBC's record financial results in 2007, with profit before tax up 10% to $24.2 billion. He highlighted strong performance in Asia, particularly Hong Kong and mainland China. Flockhart also outlined HSBC's strategies and investments across various Asian markets to drive continued growth, such as expanding branch networks, building partnerships, and pursuing acquisitions. He affirmed HSBC's position as the leading international bank in emerging Asia.
Transnet aims to align its supplier development activities with South Africa's economic objectives through its Corporate Social Development Plan. It will focus on developing local tier 1 and tier 2 suppliers in related industries to increase employment, skills development, and black economic empowerment. By using its sphere of influence over large original equipment manufacturers, Transnet can help direct more spending to local supplier development and job creation. This shared vision between Transnet's objectives and those of the South African government will promote inclusive economic growth.
1) Fidelity National Information Services presented an investor presentation in June 2008 that discussed their planned spin-off of the Lender Processing Services segment. The spin-off was intended to create two pure play companies that could better focus resources and have improved investment profiles.
2) FIS overview highlighted their leadership in payments processing and core banking software, with $2.9 billion in annual revenues and significant scale across the US and international markets.
3) Financial highlights showed strong revenue growth, expanding margins, and increasing free cash flow that could be used to invest in growth, reduce debt, pursue acquisitions and return capital to shareholders.
Delivering Synergies : A closer look at post merger integrationSanjay Uppal
1) The document discusses Emirates NBD's integration process following its merger in 2007.
2) It outlines key stages of integration including designing an integration plan, establishing dedicated integration teams, and communicating expected synergies.
3) By mid-2008, Emirates NBD had exceeded synergy targets for the year, achieving cost savings and revenue increases through initiatives like branch consolidation and cross-selling.
The document provides an overview of GE Capital Finance and its strategy for navigating challenging market conditions in 2008 and 2009. Key points:
1) GE Capital expects earnings in 4Q2008 to be at the low end of guidance and will take $1-1.4 billion in restructuring charges to accelerate cost cuts.
2) GE Capital is committed to maintaining its AAA credit rating by reducing commercial paper reliance, strengthening capital, and repositioning its business model.
3) GE Capital's plan for 2009 includes reducing commercial paper to $50 billion, issuing $45 billion in long term debt, and growing alternative funding sources like deposits to strengthen its funding profile.
This document summarizes a presentation given by Lear Corporation at an industrial conference. It discusses Lear's strategic overview and financial performance. Lear is the world's largest automotive interior supplier, with record sales and improving financial metrics. It aims to profitably grow its business globally by leveraging its leadership position and expanding in Europe and Asia. Lear also generates strong cash flow and has a record backlog to support continued growth. The presentation outlines Lear's goals for 2004 of achieving further sales and earnings growth through operational excellence and innovation.
Lear Corporation has grown rapidly over the past decade through strategic acquisitions and operational excellence. It is now a global leader in automotive seating and electrical systems. Looking forward, Lear aims to further diversify its business across regions and customers while repositioning its business in North America for improved long-term profitability. Near-term financial results have been negatively impacted by lower vehicle production and rising material costs, but Lear has a strong sales backlog that positions it for continued growth.
Private Equity Firms See Agriculture, Education, Renewable Energy and Services as Hottest Asian Investments for 2010 and beyond.
Private Equity (PE) leaders in Asia may differ in their growth expectations for 2010 and beyond, but they all agree that PE Investments will shift from traditionally attractive sectors such as Information Technology, Consumer and Retail, Financial Services and Real Estate. What are the fundamentals driving this trend and what strategies will PE firms pursue?
This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP
The document is a confidential report from McKinsey & Company on achieving sustainable and inclusive growth through global sourcing of services. It discusses perspectives on the IT/BPO offshore outsourcing industry, how the industry has transformed India, and provides concluding remarks. Key points include: the IT/BPO industry has significant latent demand and adoption is expected to accelerate; India leads with 65% and 46% market shares in IT and BPO respectively; the industry has potential to contribute 12-15% to India's GDP and create over 10 million jobs by 2010; it has improved higher education, employment opportunities, and quality of life in India.
The document discusses how the Finance function can deliver value to businesses by identifying opportunities for value creation, operating efficiently and effectively, and managing business performance. It advocates using a robust framework to identify weaknesses in the Finance function and opportunities for improvement. This would involve taking a holistic view of the entire Finance operating model, including its processes, structure, and how it is performing. The document also discusses redesigning the Finance operating model to balance priorities like helping implement business strategy while reducing costs. This involves choices around components like the organization structure, processes, performance measurement, and technology.
The document outlines a PR campaign for FE Credit including an analysis of the consumer finance industry, FE Credit's competitors, and FE Credit's own performance and investor profile. It proposes establishing an international media presence, creating independent research content, and expanding FE Credit's SME investor base to attract more offshore and onshore funding. The strategic framework focuses on positioning FE Credit as a true partner for finance through local and international PR activities from June to December 2019.
Heidrick & Struggles
convened two CEO roundtables in India, one
in New Delhi and one in Mumbai. The purpose
of the two events was to bring together some
40 leading company CEOs and top executives,
both Indian and foreign, to gain an insight of emerging market challenges
Morgan Stanley Basic Materials Conferencefinance10
This document provides an overview of 3M's performance in 2005 and outlook for 2006 from the perspective of Pat Campbell, 3M's Senior Vice President and Chief Financial Officer, at the Morgan Stanley 2006 Basic Materials Conference.
Key highlights from 2005 include sales growth of 5.8% to $21.2 billion, EPS growth of 13.6% to $4.26, operating income growth of 9.4% to $5 billion, and economic profit growth of 11.3% to $2 billion. All business segments achieved positive organic local currency sales growth.
For 2006, 3M plans over $10 million in growth investments, primarily aimed at organic growth, and a 15% increase in capital expenditures.
The document discusses Thailand's growing bioeconomy sector. It notes that bioeconomy is one of Thailand's targeted industries and part of its new "S-curve" strategy to create a more sustainable economy. The government and private sector have created a master plan to develop Thailand's bioeconomy, with goals of doubling GDP contribution within 5-10 years and increasing value from sugarcane and cassava. Thailand aims to become the "bio hub" of ASEAN by focusing on sustainable agriculture and establishing the country's first biorefinery complex in 2018 to produce biofuels, biochemicals, and other products from sugarcane and cassava. Foreign investors remain upbeat on Thailand's bioeconomy prospects.
The document provides an overview of private equity activity in the United Arab Emirates (UAE) in 2008. It discusses the growth of private equity in the GCC region more broadly, highlighting increasing opportunities due to factors like foreign direct investment, mergers and acquisitions activity, and fund raising. The document then examines private equity perspectives and trends specifically in the UAE, including preferred investment sectors, target returns, challenges, and future opportunities and optimism for the industry in the country. It is based on primary research conducted by D&B through interviews with leading private equity firms in the UAE.
IBM Global Finance - Building strong IT Business Cases in the New Economic WorldVincent Kwon
This document discusses how IT projects can be approved in the new economic world. It outlines the challenges facing CFOs, including constraints on access to credit and the need to prioritize short-term financial matters. It then provides advice on addressing the priorities of finance departments by cutting costs, increasing productivity, and seeking alternative financing such as leasing. The document recommends focusing business cases on metrics like ROI, clarity on benefits, and clear execution plans to gain project approval from CFOs.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
More Related Content
Similar to KSF For Chinese Companies Investing Abroad Value Partners
The document is the agenda and slides from Lear Corporation's second quarter 2004 earnings review presentation.
The presentation discusses Lear's strategy of expanding in Asia and with Asian automakers, highlights their growing presence and sales in Asia, and notes that Asian sales have doubled from 2002 to 2004.
It also reviews Lear's solid second quarter financial results and quality improvements, new business wins including a seat contract with Mazda, and product launches scheduled for the second half of 2004.
The presentation provides guidance that Lear's European sales growth will moderate in 2005 while its North American sales are expected to improve that year based on new business backlog.
What are the key dynamics of the current manufacturing sectors in China and how does it differ to other rising manufacturing countries in APAC, such as Vietnam and the Philippines? Has Trump’s call to relocate manufacturing triggered any actions? Are foreign investments in manufacturing sector in target countries growing or declining? What to look for and expect in the near future? How is the supply chain evolving and what are the expected key issues?
How will robotics, automatization, and AI shape manufacturing in the area and what does it mean to foreign manufacturing companies (especially European SMEs) in China?
These are the questions studied in a Future Watch report 2018 Asia: Manufacturing outlook with focus on China, Vietnam and the Philippines.
HSBC The world's leading international emerging markets bank - Asia strategy...QuarterlyEarningsReports2
Sandy Flockhart, CEO of HSBC, provided an Asia strategy update at the Credit Suisse Investors' Conference. He discussed HSBC's record financial results in 2007, with profit before tax up 10% to $24.2 billion. He highlighted strong performance in Asia, particularly Hong Kong and mainland China. Flockhart also outlined HSBC's strategies and investments across various Asian markets to drive continued growth, such as expanding branch networks, building partnerships, and pursuing acquisitions. He affirmed HSBC's position as the leading international bank in emerging Asia.
Transnet aims to align its supplier development activities with South Africa's economic objectives through its Corporate Social Development Plan. It will focus on developing local tier 1 and tier 2 suppliers in related industries to increase employment, skills development, and black economic empowerment. By using its sphere of influence over large original equipment manufacturers, Transnet can help direct more spending to local supplier development and job creation. This shared vision between Transnet's objectives and those of the South African government will promote inclusive economic growth.
1) Fidelity National Information Services presented an investor presentation in June 2008 that discussed their planned spin-off of the Lender Processing Services segment. The spin-off was intended to create two pure play companies that could better focus resources and have improved investment profiles.
2) FIS overview highlighted their leadership in payments processing and core banking software, with $2.9 billion in annual revenues and significant scale across the US and international markets.
3) Financial highlights showed strong revenue growth, expanding margins, and increasing free cash flow that could be used to invest in growth, reduce debt, pursue acquisitions and return capital to shareholders.
Delivering Synergies : A closer look at post merger integrationSanjay Uppal
1) The document discusses Emirates NBD's integration process following its merger in 2007.
2) It outlines key stages of integration including designing an integration plan, establishing dedicated integration teams, and communicating expected synergies.
3) By mid-2008, Emirates NBD had exceeded synergy targets for the year, achieving cost savings and revenue increases through initiatives like branch consolidation and cross-selling.
The document provides an overview of GE Capital Finance and its strategy for navigating challenging market conditions in 2008 and 2009. Key points:
1) GE Capital expects earnings in 4Q2008 to be at the low end of guidance and will take $1-1.4 billion in restructuring charges to accelerate cost cuts.
2) GE Capital is committed to maintaining its AAA credit rating by reducing commercial paper reliance, strengthening capital, and repositioning its business model.
3) GE Capital's plan for 2009 includes reducing commercial paper to $50 billion, issuing $45 billion in long term debt, and growing alternative funding sources like deposits to strengthen its funding profile.
This document summarizes a presentation given by Lear Corporation at an industrial conference. It discusses Lear's strategic overview and financial performance. Lear is the world's largest automotive interior supplier, with record sales and improving financial metrics. It aims to profitably grow its business globally by leveraging its leadership position and expanding in Europe and Asia. Lear also generates strong cash flow and has a record backlog to support continued growth. The presentation outlines Lear's goals for 2004 of achieving further sales and earnings growth through operational excellence and innovation.
Lear Corporation has grown rapidly over the past decade through strategic acquisitions and operational excellence. It is now a global leader in automotive seating and electrical systems. Looking forward, Lear aims to further diversify its business across regions and customers while repositioning its business in North America for improved long-term profitability. Near-term financial results have been negatively impacted by lower vehicle production and rising material costs, but Lear has a strong sales backlog that positions it for continued growth.
Private Equity Firms See Agriculture, Education, Renewable Energy and Services as Hottest Asian Investments for 2010 and beyond.
Private Equity (PE) leaders in Asia may differ in their growth expectations for 2010 and beyond, but they all agree that PE Investments will shift from traditionally attractive sectors such as Information Technology, Consumer and Retail, Financial Services and Real Estate. What are the fundamentals driving this trend and what strategies will PE firms pursue?
This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP
The document is a confidential report from McKinsey & Company on achieving sustainable and inclusive growth through global sourcing of services. It discusses perspectives on the IT/BPO offshore outsourcing industry, how the industry has transformed India, and provides concluding remarks. Key points include: the IT/BPO industry has significant latent demand and adoption is expected to accelerate; India leads with 65% and 46% market shares in IT and BPO respectively; the industry has potential to contribute 12-15% to India's GDP and create over 10 million jobs by 2010; it has improved higher education, employment opportunities, and quality of life in India.
The document discusses how the Finance function can deliver value to businesses by identifying opportunities for value creation, operating efficiently and effectively, and managing business performance. It advocates using a robust framework to identify weaknesses in the Finance function and opportunities for improvement. This would involve taking a holistic view of the entire Finance operating model, including its processes, structure, and how it is performing. The document also discusses redesigning the Finance operating model to balance priorities like helping implement business strategy while reducing costs. This involves choices around components like the organization structure, processes, performance measurement, and technology.
The document outlines a PR campaign for FE Credit including an analysis of the consumer finance industry, FE Credit's competitors, and FE Credit's own performance and investor profile. It proposes establishing an international media presence, creating independent research content, and expanding FE Credit's SME investor base to attract more offshore and onshore funding. The strategic framework focuses on positioning FE Credit as a true partner for finance through local and international PR activities from June to December 2019.
Heidrick & Struggles
convened two CEO roundtables in India, one
in New Delhi and one in Mumbai. The purpose
of the two events was to bring together some
40 leading company CEOs and top executives,
both Indian and foreign, to gain an insight of emerging market challenges
Morgan Stanley Basic Materials Conferencefinance10
This document provides an overview of 3M's performance in 2005 and outlook for 2006 from the perspective of Pat Campbell, 3M's Senior Vice President and Chief Financial Officer, at the Morgan Stanley 2006 Basic Materials Conference.
Key highlights from 2005 include sales growth of 5.8% to $21.2 billion, EPS growth of 13.6% to $4.26, operating income growth of 9.4% to $5 billion, and economic profit growth of 11.3% to $2 billion. All business segments achieved positive organic local currency sales growth.
For 2006, 3M plans over $10 million in growth investments, primarily aimed at organic growth, and a 15% increase in capital expenditures.
The document discusses Thailand's growing bioeconomy sector. It notes that bioeconomy is one of Thailand's targeted industries and part of its new "S-curve" strategy to create a more sustainable economy. The government and private sector have created a master plan to develop Thailand's bioeconomy, with goals of doubling GDP contribution within 5-10 years and increasing value from sugarcane and cassava. Thailand aims to become the "bio hub" of ASEAN by focusing on sustainable agriculture and establishing the country's first biorefinery complex in 2018 to produce biofuels, biochemicals, and other products from sugarcane and cassava. Foreign investors remain upbeat on Thailand's bioeconomy prospects.
The document provides an overview of private equity activity in the United Arab Emirates (UAE) in 2008. It discusses the growth of private equity in the GCC region more broadly, highlighting increasing opportunities due to factors like foreign direct investment, mergers and acquisitions activity, and fund raising. The document then examines private equity perspectives and trends specifically in the UAE, including preferred investment sectors, target returns, challenges, and future opportunities and optimism for the industry in the country. It is based on primary research conducted by D&B through interviews with leading private equity firms in the UAE.
IBM Global Finance - Building strong IT Business Cases in the New Economic WorldVincent Kwon
This document discusses how IT projects can be approved in the new economic world. It outlines the challenges facing CFOs, including constraints on access to credit and the need to prioritize short-term financial matters. It then provides advice on addressing the priorities of finance departments by cutting costs, increasing productivity, and seeking alternative financing such as leasing. The document recommends focusing business cases on metrics like ROI, clarity on benefits, and clear execution plans to gain project approval from CFOs.
Similar to KSF For Chinese Companies Investing Abroad Value Partners (20)
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
KSF For Chinese Companies Investing Abroad Value Partners
1. China M&A Conference 2008-P0
The information contained in this document belongs to Value Partners S.p.A and to the recipient of the document.
The information is strictly linked to the oral comments which were made at its presentation, and may only be used
by attendees of that presentation. Unauthorized copying, disclosure or distribution of the material in this document
is strictly forbidden and may be unlawful.
Beijing, October 2008
0
2. China M&A Conference 2008-P1
1• Chinese outbound FDI have increased sharply and this process is likely to accelerate in next years,
driven by the stronger position of Chinese companies and by the current international scenario
2• Over the past years there have been some remarkable success stories of foreign expansion by
Chinese companies, while other initiatives have encountered some difficulties. As a matter of fact,
Chinese companies are often hesitant to pursue outbound opportunities because of their lack of
international experience
3• In order to succeed in their overseas expansion, Chinese companies should go through four key steps:
a) Develop a clear international strategy; b) Prepare the organization and resources to succeed; c)
Build strong understanding of target markets; d) Manage carefully the post acquisition phase
4• Chinese companies should move quickly in this direction to capture the opportunities offered by the
current scenario
1
3. China M&A Conference 2008-P2
1• Chinese outbound FDI have increased sharply and this process is likely to accelerate in next years,
driven by the stronger position of Chinese companies and by the current international scenario
2• Over the past years there have been some remarkable success stories of foreign expansion by
Chinese companies, while other initiatives have encountered some difficulties. As a matter of fact,
Chinese companies are often hesitant to pursue outbound opportunities because of their lack of
international experience
3• In order to succeed in their overseas expansion, Chinese companies should go through four key steps:
a) Develop a clear international strategy; b) Prepare the organization and resources to succeed; c)
Build strong understanding of target markets; d) Manage carefully the post acquisition phase
4• Chinese companies should move quickly in this direction to capture the opportunities offered by the
current scenario
2
4. China M&A Conference 2008-P3
CAGR 2003-2007
USD billion, 2003-2007
Key drivers:
• Chinese companies’
strong demand to gain 26.5
access to: 75%
- Natural resources 21.2
- New markets
- New technologies
• Strengthening
competitiveness of 12.3
Chinese companies
• Sufficient FX reserves 5.5
accumulated in the past
2.9
• China government
incentives
2003 2004 2005 2006 2007
Source: Ministry of Commerce, Statistic Bureau, Value Partners analysis
3
5. China M&A Conference 2008-P4
%, 2007
Accumulative Outbound FDI as % of GDP by 2007
UK 61.5
• Compared to developed
France 54.7
countries, China outbound
FDI vs. GDP is still very
low
Taiwan 41.3
• The low ODI reflects that
Chinese companies still
Germany 37.3
rely heavily on domestic
market as well as
resources
Malaysia 31.2
• Going forward, along with
20.2 GDP growth and
US
globalization of Chinese
companies, there is a huge
12.4 potential for increase of
Japan
Chinese outbound FDIs
China 3
Source: United Nations Conference on Trade& Development, Ministry of Commerce, Statistic Bureau, Value Partners analysis
4
6. China M&A Conference 2008-P5
! quot;
# #
Analysis based on 46 outbound FDI transactions above USD10mln in 2005-Sep.2008
Chinese outbound FDI by industry Chinese outbound FDI by geography
100%=49.5 billion USD (~53% of total ODI) 100%=49.5 billion USD (~53% of total ODI)
Machinery:2% Telecom & high-tech: 2%
Latin
Transportation & Consumer goods: 1% America • Shift from Asia to other
logistics: 2% Others: 1% Oceania
geographies
5%
5%
26% North
Africa America
17%
Natural Financial
resource 51% services
40%
Europe 23% 24%
Asia
Source: Thomson Financial, Value Partners analysis
5
7. China M&A Conference 2008-P6
# $ $ % &
Analysis based on 46 outbound FDI transactions above USD10mln in 2005-Sep.2008
Reasons for outbound Value of deals
No. of deals Top industries Top target areas
investment (bln USD)
1 Entering new market
• Banks • USA
26 29.5 • Investment advice • Hong Kong
• Semiconductors • UK
2 Financial investment/ • Banks • Hong Kong
diversification 28.9 • USA
22
• UK
3 Access to natural
• Oil and gas • Kazakhstan
resources 19 19.9 • Iron ores • Canada
• Gold ores • Australia
• Used to be primary
4 reason in previous years
Access to capabilities • Banks • USA
(e.g. risk management, 12 17.8 • Hong Kong
product design)
5
Increase manufacturing • Semiconductors • Japan
scale 9 2.8 • Medical apparatus • USA
Source: Thomson Financial, Value Partners analysis
6
8. China M&A Conference 2008-P7
$
Chinese companies among Fortune 500, 2003 vs. 2007
Number of Chinese companies Average revenues
CAGR 03‘-07’ USD billion CAGR ‘03-’07
35 12% 37.6
24%
23.9
15
2003 2007 2003 2007
• New companies joining the list are mainly in Energy, Financial sector, Telecom &
High-tech industries, reflecting strengthening diversification of China economic
structure
• Thanks to quick increasing of revenue size, 6 Chinese companies newly join in top
200 and 3 newly join in top 25 (Sinopec, State Grid, China National Petroleum)
Source: Fortune500, Value Partners analysis
7
9. China M&A Conference 2008-P8
Jan 2007
P/E ratio in different countries, Jan.2007 vs. Oct. 2008 Oct 2008
Countries Index P/E change % change
17.4
USA S&P 500 -18%
14.2
24.5
USA Nasdaq -30%
17.0
14.0
UK FTSE 100 -33%
9.4
Germany DAX 14.2
-18%
11.7
France CAC-40 15.4
-36%
9.9
Spain IBEX 35 21.2
9 -58%
Italy MIB 30 17.1
8.3 -51%
Australia S&P/ASX 200 17.3
-29%
12.3
Singapore Straits Times 14.3
6.7 -53%
• Average PE for above countries in Oct.2008 is 9
• For comparison, PE in Shanghai index is 16
Source: Stock exchanges in different countries, Value Partners analysis
8
10. China M&A Conference 2008-P9
' (!#
(!#
Cases Key consideration to make a M&A case abroad
Lack of international Possibility to get Difficulty to develop Difficulty to work with
expansion experience targets’ key information Greenfield projects foreign partners
Chinese M&A
investments abroad
• As newly emerging • The target markets, if in • Due to limited • Chinese companies may
global players, Chinese developed countries, international local market face significant difficulty
companies are fairly have systematic experiences, it is hard for due to then lack of
weak in international company database for Chinese companies to understanding on foreign
expansion experiences M&A reference start up a new entity in culture
foreign environment
Foreign M&A
investments in China
• Developed countries • China enterprise • Foreign companies • Foreign players must
have established strong database is still under usually can leverage on develop capability of
track records in construction own experiences and adapting to Chinese
international expansion • Still need to dedicate a local professional culture
lot of efforts to verify the support to set up WOFE
information in China
9
11. China M&A Conference 2008-P10
1• Chinese outbound FDI have increased sharply and this process is likely to accelerate in next years,
driven by the stronger position of Chinese companies and by the current international scenario
2• Over the past years there have been some remarkable success stories of foreign expansion by
Chinese companies, while other initiatives have encountered some difficulties. As a matter of fact,
Chinese companies are often hesitant to pursue outbound opportunities because of their lack of
international experience
3• In order to succeed in their overseas expansion, Chinese companies should go through four key steps:
a) Develop a clear international strategy; b) Prepare the organization and resources to succeed; c)
Build strong understanding of target markets; d) Manage carefully the post acquisition phase
4• Chinese companies should move quickly in this direction to capture the opportunities offered by the
current scenario
10
12. China M&A Conference 2008-P11
) $ %
$
Company Introduction
Some • Acquired the whole PC business unit of IBM in May, 2005
remarkable
success
stories… • By 2007, Huawei set up more than 100 branches in the world and
gets 72% sales revenue from overseas market
• Zoomlion acquired the Italian company CIFA in September, 2008
…some • CNOOC bid to buy Unocal in June, 2005
initiatives that
encountered
difficulties • Haier bid to buy Maytag in June, 2005
• TCL found a JV (TTE) with Thomson in July, 2004
• A Chinese textile • Tried to buy assets of an Italian company
company
Source: Industry research, Value Partners analysis
11
13. China M&A Conference 2008-P12
* $ +(
,
- .
KSF Description Rationale
Combined • The acquisition brings together most valuable • Lenovo can quickly access to
strengths of competencies of two companies: target markets and customer
two companies - IBM’s strong product design, customers segments thanks to IBM’s long
services and branding established market position
- Lenovo’s competitive production, supply chain • IBM can focus on providing IT
management and procurement solutions by giving up non • Successfully
• Through the acquisition, Lenovo gains access to strategic business to a leading penetrated into target
global corporate client computer market player markets
• Gained strong
product design and
advanced customer
service
Realized the • In order to smooth the acquisition impact, little • Smooth transition after the competencies
importance of change on organizations and processes in the acquisition helps to retain
cultural fit and first year post acquisition customers and talents • Effectively generated
made it top • Located the HQ in US and hired foreign • Two companies’ culture might synergies after the
priority post management team compensate with each other acquisition
acquisition • Carefully introduced Lenovo’s key sales model and benefit the new entity in the
to overseas markets since the third year after long term
acquisition
Source: Industry research, Value Partners analysis
12
14. China M&A Conference 2008-P13
/ $ $ % %
&
KSF Description Rationale
Started • Entered Africa, mid-east, Asia-Pacific, CEE • Emerging markets have lower
expansion from and Latin America since 1995 entry barriers and are more
emerging - Emphasize on competitive price strategy sensitive to pricing
markets • Developed countries require
• Later entered developed countries in Europe stricter qualifications and
• Successfully
and USA longer entry time
penetrated into both
- Started with partnership with world leading
emerging and
competitors
developed
Created a pool • Recruited qualified talents and retained them • Chinese sales team not only is countries
of managers with competitive salary packages competent to win contracts in
capable to fierce international competition, • Built a strong
work in • Deployed key personnel in sales team to but also has strong international sales
international develop international markets since 2000 commitment to company culture team
environment - Accounts for ~50% of overseas staff
• Effectively delivered
products and services
Retained • Invited consulting firms who specialized in • Effectively identify local customer to meet local clients’
advisors to Telecom industry to conduct detailed local needs so as to develop right needs
help it market research products/service to fit with it
understand
customer
needs
Source: Industry research, Value Partners analysis
13
15. China M&A Conference 2008-P14
0 1 #
%
KSF Description Rationale
Strong • CIFA is an Italian manufacturer of concrete • Rapidly move production of
rationale for machineries, the only one with a full range of some components to generate
the deal products cost reduction synergies for
• In several segments CIFA is a recognized CIFA
leader, thanks to technology, quality and • Leverage CIFA’s distribution
• Successfully
reasonable price channels to sell low end
completed
• A rigid labour environment in Italy makes products manufactured by
acquisition
changes and efficiencies difficult Zoomlion
• Zoomlion recently emerged rapidly thanks to • Reduce duplicated investments
• Created global
the explosion of construction sector in China in several markets
leader in the industry
and enjoying the cost advantages of China
production
• Started integration
Participation of • CIFA’s ownership, a PE fund was looking for process
• Financial partner could help to
financial an exit find the right investor through its
partner • It identified Zoomlion as a potential investor strong network both in
investment and industry area
Recognition of • Zoomlion already started to approach some • Understanding of different
cultural foreign emerging markets cultures could help to facilitate
diversity • Both parties had good communication during the negotiation process
the process
Source: Industry research, Value Partners analysis
14
16. China M&A Conference 2008-P15
quot;22 /
1 $ $
Player Description Why did it stop?
• In June 2005, CNOOC placed a bid for Unocal, • Unable to identify the sensitivity of the
the NO.9 petroleum company in USA bid at early stage
CNOOC • In July 2005,Chevron emerged as competitor of - US might worried about China’s
the bid and soon got Unocal shareholders’ ambition to get its strategic energy
support resources through the bid
• Both companies launched PR and lobbying
activities, but in the end USA government decided • Lack of experience in communication
to examine CNOOC bid with US media and government
• As a result, CNOOC withdrew the bid and - Too late to start lobbying and PR
Chevron won
• In June 2005, Haier submitted LOI to Maytag and • Faced challenges from US people and
started due diligence government due to CNOOC bidding
Haier • Ripplewood and Whirlpool joined in the acquisition
competition with higher price • Lack of experience in communication
• Haier withdrew the bid and Whirlpool won with US media
- Not actively disclosed to media the
bidding plan/intention, leading to
suspicions from US people
Source: Industry research, Value Partners analysis
15
17. China M&A Conference 2008-P16
' * & '
$ % &
$ 3 )
Player Description Why did it experience problems?
• In July 2004,TCL set up TTE, a JV with • Lack of understanding of differences
Thomson, in which ~9,000 employees of between French and Chinese culture
TCL Thomson joined - French might prefer work and life
balance, while Chinese might not
• In 2005, TTE lost ~70 mil EUR care to mix work and life together
• In Nov 2006, TCL launched restructuring plan • Lack of experience in dealing with
on TTE, stopping its sales activities in European European Unions
market - European Unions strongly protect
workers’ rights, leading to tough
• By 2006,TTE lost ~250 mil EUR due to business negotiations and high restructuring
loss and restructuring cost cost
Source: Industry research, Value Partners analysis
16
18. China M&A Conference 2008-P17
# &
Context Rationale of deal Why did it fail?
• A world wide textile production • By acquiring assets, Chinese • The Chinese company saw the
shifting from USA/EU to Asia company could have deal only as an opportunity to
(not only China) - Shorter time to market make some savings but did not
- Faster than long row of realize the value of anticipating
• An Italian textile company was competitors to win the competitions of ~2 years
looking for a buyer for some competition
assets (machines) • Different cultural approach to
• For Italian company: negotiate:
• A hot market where buyers had a - Assets has interesting value - Italian company changing
1.5/2y waiting list to buy these - Not necessary to sell the whole opinion very frequently
types of machines company, which might make - Chinese company not always
the potential buyer afraid of giving clear messages
liability/employee issues
Source: Industry research, Value Partners analysis
17
19. China M&A Conference 2008-P18
#
%
&
Key weakness of Chinese companies Implications
• Limited knowledge of international markets, e.g. • Chinese companies often
- Market situation hesitant to pursue
- Regulations outbound opportunities
- Customers
• Approach tends to be
• Limited availability of managers who can operate in
reactive rather than
international context, e.g.
- Language proficiency proactive, leading to
- Foreign culture understanding suboptimal selection of
- Social network opportunities
• Lack of systematic process, e.g.
- Strategy definition
- Roadmap development
- Execution process
18
20. China M&A Conference 2008-P19
1• Chinese outbound FDI have increased sharply and this process is likely to accelerate in next years,
driven by the stronger position of Chinese companies and by the current international scenario
2• Over the past years there have been some remarkable success stories of foreign expansion by
Chinese companies, while other initiatives have encountered some difficulties. As a matter of fact,
Chinese companies are often hesitant to pursue outbound opportunities because of their lack of
international experience
3• In order to succeed in their overseas expansion, Chinese companies should go through four key steps:
a) Develop a clear international strategy; b) Prepare the organization and resources to succeed; c)
Build strong understanding of target markets; d) Manage carefully the post acquisition phase
4• Chinese companies should move quickly in this direction to capture the opportunities offered by the
current scenario
19
21. China M&A Conference 2008-P20
&
%
1 2 3 4
Develop a clear Prepare the organization Build strong Carefully manage the
international strategy understanding of target Post Merger Integration
markets phase
• Define objectives • Define need for resources • Build market database • Quickly take key strategic
decisions, to define main
• Understand internal • Prepare organization • Create networks in target directions to follow
strengths/weaknesses responsible for countries
international expansion • Identify key resources in
• Analyze global competitive • Identify most suitable charge and involved in the
scenarios • Recruit/train people targets process
• Define priorities • Define process to scout • Understand valuation and • Define initiatives and their
- Countries and pursue opportunities value drivers priorities, targets to
- Targets achieve and monitoring
• Manage negotiations tools
• Ensure alignment of top
management • Understand the relevance
of cultural and
communication issues
20
22. China M&A Conference 2008-P21
1 2 3 4
45
Activities Key success factors
Define objectives • Objectives need to be clear, both qualitatively and quantitatively
• Develop specific goals for different timelines (short term, mid term
and long term)
Understand internal • Leverage on both outsiders’ and insiders’ observations to form
strengths/weaknesses objective opinions
• Tailor international strategy to internal capability of companies
Analyze global competitive • Proactively collect and analyze competitors’ moves to understand
scenarios the full picture of global competition
• Focus on most similar competitors to gain further understanding
Define priorities • Priorities should reflect above considerations/analysis, i.e.
- Consistent with objectives
- Matched with internal capabilities and help to strengthen
competitiveness
Ensure alignment of top • Make sure all top management are on board to discuss the strategy
management and express opinions
• Keep timely sharing of opinions among top management
21
23. China M&A Conference 2008-P22
1 2 3 4
3& 4
Company Key actions Effects
China Minmetals • Defined a clear mid to long term strategy • By now has 21 branches &
• Decided to shift from “trader” role to the comprehensive metal companies located in Asia,
group, covering full industry value chain Europe, America, Oceania,
• Carried out series of international investments in order to access and Africa
to ore resources (upper stream) and overseas distribution
channels (down stream)
Haier Group • Aims to create an international brand • Set up local R&D center,
• Investments follow importance of regional markets in terms of trading company and
sales revenue: from Southeast Asia to Western market factories in more than 30
• In regional markets, priority of investments are first in sales, countries
second in setting up factory
• Design customized products with local R&D center
Industrial & Commercial • Mainly to follow its client’s, e.g. Chinese SOEs’ • Open 9 overseas branches &
Bank of China internationalization path: 3 representative office
- Focus on nearby economic areas that are strongly related to • Acquired 6 foreign banks
Chinese business activities during 2000-2007
• Provide products/services customized to different countries’
clients
Source: Industry research, Value Partners analysis
22
24. China M&A Conference 2008-P23
1 2 3 4
-5 .
Activities Key success factors
Define need for resources • Identify suitable talents/experts to focus on international expansion
• Allocate sufficient funding to support possible expansion
Prepare organization • Dedicate specific departments/teams to focus on international
responsible for expansion
international expansion • Clearly define the roles of all related departments as well as work
process
Recruit/train people • Target both Chinese and foreign talents who have solid overseas
business experiences
• Provide practical training, e.g. on site training in foreign markets
Define process • Standardize target market screening criteria
• Clarify decision making process to speed up possible initiatives
23
25. China M&A Conference 2008-P24
1 2 3 4
3& -
Company Key actions Effects
Huawei • Deployed Chinese sales talents to overseas market, providing: • 50% overseas staff are
- Competitive salary package Chinese
- Promotion based on overseas performance
- Intensive training
China Mobile • Defined needs for HR resources according to international • Set up dedicated team for
expansion plan overseas expanding
• Prepared HR resources both from internal training and outside • Mainly rely on in-house
headhunting expertise but start to attract
• Strengthened HQ management structure to cope with higher outside talents
risk and cost pressure from international operations
Aluminium Corporation • Cooperate with foreign universities to develop specific project • Build up international talent
of China dedicated to develop international talents pool covering law, finance
• Recruit international M&A experts from market channels and non-ferrous metals, etc.
• Provide overseas on job training for talents who are going to
be sent to overseas market
Source: Industry research, Value Partners analysis
24
26. China M&A Conference 2008-P25
1 2 3 4
6 Build strong understanding of target markets
5
Activities Key success factors
Build market database • Build comprehensive fact books of player in target market
• Collect key data about most interesting players
• Update information frequently
Create network in target • Identify insiders who can effectively help to facilitate the process
countries • Start contacts with local regulators and keep timely communications
• Leverage local professional firms and business partners to reach
important contacts
Identify suitable targets • Cleary define the target screening criteria
• Leverage local networks and professional firms to identify target pool
• Shortlist targets based on quick verification on their business
soundness and interests to discuss investments
Understand valuation and • Conduct in-depth due diligence to understand target’s financials and
value drivers business potential
• Referring to industry experiences, find out key value drivers and
quantify the impact to valuation
Manage negotiations • Approach targets in co-operative manner
• Pay attention to the undisclosed subtle message of stake holders of
the targets and correctly address their real motivations when
proposing deal solutions
25
27. China M&A Conference 2008-P26
1 2 3 4
3& 6
Company Key actions Effects
ShenZhen Mindray Bio- • Working closely with many professional firms e.g. investment • Acquired Datascope in
medical Electronics bank, auditors, lawyers and HR advisors, etc. on due diligence, USA in March, 2008
synergies analysis and negotiation
• Conducted in-depth market analysis on USA market
China Merchants Bank • Identified HK as target market, following CMB’s strategy to focus • China Merchants Bank
on nearby markets succeeded in acquiring
• Working with international investment bank to develop Wing Lung Bank in Hong
valuation on targets based on due diligence Kong in June, 2008
• Cleary understood needs of the shareholders of target,
facilitating the negotiation process
Eurizon Capital • Developed in-depth China market understanding with the help of • Acquired 49% (maximum
consulting firm to define a clear market entry strategy shares a foreign investor
• Mainly monitored the investment criteria and valuation can get) of a leading
process, leaving consulting firm to organize all relative parties to Chinese fund management
close the deal (lawyers, auditors, etc.) company
(Acquisition of Penghua Fund)
Source: Industry research, Value Partners analysis
26
28. China M&A Conference 2008-P27
1 2 3 4
7 (
Activities Key Success Factors
Quickly take key strategic • Quick identification of macro priorities, consistent with the
decisions identified rationale behind the deal
• Definition of main objectives to achieve and milestones
• Clear leadership to orchestrate the entire process
Identify key resources • Selection of a joint (contribution from both the involved parties)
Integration Team in charge of defining guidelines to follow
• Appointment of a skilled Integration Manager, accountable for the
end-to-end process
Define initiatives and • Detailed function/area analysis with following prioritization of the
priorities initiatives to activate (trade-off impact vs. ease of implementation)
• Clear timing and deadline
• Frequent progress reviews and interactions
Understand cultural and • Open communication among team members…
communication issues • …taking into account cultural differences
• No conflicting environment between the entities (“we” vs. “they”)
27
29. China M&A Conference 2008-P28
1 2 3 4
3& 7
Company Key actions Effects
Lenovo / IBM • Quick understanding that solution to the potential cultural clash • Powerful leader in the PC
with cultural integration was a key factor to succeed industry, with very broad
• Significant attention paid in recruiting US-educated Chinese portfolio
middle-managers • Global player integrating two
• Some experienced managers from IBM put in charge of the cultures, languages,
international portion of the combined business processes and markets
Nissan / Renault • Identification of the synergies and of the targets to achieve • 5th largest global
through the partnership: automaker
− Brand complementarities: Nissan for US, Renault for EU • Global market share of 9%
− Marketing, design and small cars expertise as contribution from (by volume)
Renault, large cars and manufacturing excellence from Nissan • 38 industrial sites in 17
• Intercultural challenges harmonized through the charismatic markets
leadership of Carlos Goshn
Arcelor Mittal • Identification of the synergies (purchasing, manufacturing and • World leader steel company,
marketing) as pillars for the entire process with over 320,000 employees
• Definition of special governance mechanisms to facilitate in more than 60 countries
effective integration • Industrial presence in
• Significant effort in managing “external” relations before, Europe, Asia, Africa and
during and after the deal signature America
28
30. China M&A Conference 2008-P29
1• Chinese outbound FDI have increased sharply and this process is likely to accelerate in next years,
driven by the stronger position of Chinese companies and by the current international scenario
2• Over the past years there have been some remarkable success stories of foreign expansion by
Chinese companies, while other initiatives have encountered some difficulties. As a matter of fact,
Chinese companies are often hesitant to pursue outbound opportunities because of their lack of
international experience
3• In order to succeed in their overseas expansion, Chinese companies should go through four key steps:
a) Develop a clear international strategy; b) Prepare the organization and resources to succeed; c)
Build strong understanding of target markets; d) Manage carefully the post acquisition phase
4• Chinese companies should move quickly in this direction to capture the opportunities offered by the
current scenario
29
31. China M&A Conference 2008-P30
'
&
1 %
Opportunities in current scenario Priorities for Chinese companies
• Increasing strengths of Chinese companies 1• Develop international strategy
• Favourable economic context
- Attractive valuation of foreign companies 2• Prepare organization for
- Increasing need for capital in foreign countries international growth
- Appreciation of RMB
3• Actively scout for M&A targets
• Government support through a disciplined process
30