Clearwater China Desk Presentation

Transcript Clearwater China Desk Presentation

Entering Overseas Markets - An M&A Overview

Nick Horrocks Director

尼克

.

可勒基斯总监

          About Clearwater Corporate Finance LLP & IMAP Current M&A Environment Current Issues for overseas M&A Challenges for 2012 Clearwater China Desk China Overview Case Study - India Summary Links to useful websites Appendix 2

Current Issues for European M&A

  Eurozone Sovereign debt crisis Confidence in economic growth However  Requirement to diversify geographically  Access growth markets  Mitigate against localised risks  Access to talent  Develop scale and position quickly  Innovation 6

Global M&A Challenges for 2012

      Macroeconomic conditions, particularly uncertainties in the Eurozone Volatile market conditions in the equity and financial markets Unknown impact of political environment – leadership changes in Europe, forthcoming Presidential election in the US, and leadership transition in China Protectionist measures may impact deal flows Shareholder pressure and activism an increasing influence Antitrust regulation on the rise – now over 100 merger control regimes across the globe 7

Clearwater China Desk

Our Expertise

 China and UK focused  Strategy and M&A advisory services   Sector-focused Transactions valued at between $50m and $500m   Largest independent mid-market M&A advisor in the UK 16 years of experience in China

Our People

 Bicultural partnership with Chinese and UK nationals  65 M&A professionals and strategy consultants in China  40 M&A professionals in the UK

Our Clients

 Mid-market focused  Multi-national groups, private equity-backed companies and owner-managed companies   500 strategy projects in China 150 M&A transactions in China  500 M&A transactions in the UK 9

China Overview

Chinese Inbound M&A  “No business is global without exposure to the Chinese market”  Overseas groups have traditionally sought a Chinese presence through representative offices  The inbound M&A market has recently been driven by corporate minority investments and private equity  Statistics are limited but it is clear that inbound M&A is growing dramatically as overseas groups seek Chinese presence  Increasingly overseas groups are seeking wholly-owned operations in China in order to control their activities 10

Case Study

UK-based software developer acquires in India

Background     Small deal Same sector, access to Indian market and development resource Company has gone from 10% overseas sales to 45% overseas – first acquisition Owner is vendor and exiting the business Issues        Time Tax & structure Language & culture Management / leadership Integration Commercial history of the business Personal relationships in local markets 13

Links to useful websites

 UK Trade & Investment (UKTI)  IMAP  Clearwater Corporate Finance LLP  Office for National Statistics (ONS)  Institute of Mergers, Acquisitions and Alliances (IMAA)  InterChina Consulting www.ukti.gov.uk

www.imap.com

www.clearwatercf.com

www.ons.gov.uk

www.imaa-institute.org

www.interchinaconsulting.com

Appendix

InterChina 2011 Leading Strategy and M&A advisory firm in China

• • Our Value • • China specialist.

Strategy and M&A advisory • • Sector expertise.

Retained 17 years experience.

Our People • • Bicultural partnership.

60 consultants & advisors.

• Chinese, senior, industrial, technical.

• Located in China, EU, US offices.

• Strategy Practice • 22 Strategy Projects • • Healthcare: 30% Machinery: 25% • Chemical: 20% • Others: 25% • M&A- Transaction Practice • 35 Mandates under process. • 5 successful closings in 2011, representing 600 million USD • CEPSA (Petrochemical) • KUO (Petrochemical) • • BOBST (Machinery) AVIC (Aeronautical) • Undisclosed (Chemical) • In process to closing another 5 transactions. 17

Nick Horrocks

尼克 .

可勒基斯

Director

总监 Tel: +44 (0)7788 144 475 Email: [email protected]