Clearwater China Desk Presentation

Report
Entering Overseas Markets
- An M&A Overview
Nick Horrocks
Director
尼克.可勒基斯
总监
Contents

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
3
4
5
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
8
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
Our Clients

Bicultural partnership with Chinese and UK nationals

Mid-market focused

65 M&A professionals and strategy consultants in China


40 M&A professionals in the UK
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
11
12
Case Study
UK-based software developer acquires in India
Background
Issues

Small deal

Time

Same sector, access to Indian market
and development resource

Tax & structure

Company has gone from 10% overseas
sales to 45% overseas – first
acquisition

Language & culture

Management / leadership

Integration

Commercial history of the business

Personal relationships in local markets

Owner is vendor and exiting the
business
13
14
Links to useful websites

UK Trade & Investment (UKTI)
www.ukti.gov.uk

IMAP
www.imap.com

Clearwater Corporate Finance LLP
www.clearwatercf.com

Office for National Statistics (ONS)
www.ons.gov.uk

Institute of Mergers, Acquisitions and Alliances (IMAA)
www.imaa-institute.org

InterChina Consulting
www.interchinaconsulting.com
15
Appendix
16
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]
www.clearwatercf.com
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Birmingham
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Fax: +44 (0)845 052 0361
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NG1 7AQ
Tel: +44 (0)845 052 0380
Fax: +44 (0)845 052 0381

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