|China M&A Research
GCiS is adept in and has strong experience in China M&A projects, having carried out numerous projects for leading multi-nationals in the B to B field. We excel here because we use systematic methods, and at the same time have strong experience in our target industries, which makes a great difference.
A typical M&A Project by GCiS will be done in 3 phases, depending on the needs of the client:
Phase 1: List Generation. Understand how many and what kind of companies are in the market, and make a list of these. Then screen out the ones that do not meet the most basic criteria (such as products, size, ownership), through pre-screening and short interviews. Remaining companies pass to Phase 2, with the client’s approval.
Phase 2: In-depth Evaluation. This means evaluating a smaller set of potential candidates much more in-depth, focusing on a range of issues in sales and marketing, management, product and manufacturing, and finance. From this a much deeper portrait of these companies is developed, with a smaller set passing to Phase 3.
Phase 3: Final Candidates. This phase is optional, and can go deeper in the Phase 2 categories. This may include market due diligence, as well as interviews with third parties related to candidates, for a broader understanding of these companies. In many cases this includes initial M&A discussion with certain companies. A final list of targets is recommended and profiled.
Delivering Reliable Results
Important factors here are:
Feasible Criteria. Not all criteria matches up well with the China market, and GCiS will work with the client to make sure that the criteria is set up appropriate for project success.
Understanding the market. Screening through companies is not enough. It is also important to have an understanding of the industry and market in which they operate.
Understanding the criteria. What is the client’s most important criteria for acquisition? What is flexible and what is not? This could focus on market share and clients, manufacturing facilities, products, key relationships, etc. What will make or break the deal?
Operating with flexibility. When can the criteria be relaxed or tightened? Do any initial findings alter the project.
Dedicated Team. The team needs to have experience both in M&A research as well as in the target industry, and needs to be full time on the project. GCiS uses only trained full time employees for these projects.
Systematic Approach. We believe that the approach must be systematic- gradually moving from inclusive to exclusive based on the client’s criteria and feedback, as well as the reality of the market.
Cross-checking. The data needs to be cross-checked- such as info coming from different sources and departments in the same company, as well as from third parties if feasible.
Client Interaction. M&A projects are very interactive, with meetings and client contact at many stages in the project, both formal and ad hoc.
Please contact us for additional details on the GCiS M&A Research Program.