China Business Blog and Podcast

Steve Ganster Keynotes Deal Cultivation at China M & A Conference

Shanghai, China, June 21, 2009 – Steve Ganster, Executive Director of Technomic Asia, will highlight the opportunities and challenges of mergers and acquisitions in China at the GIC sixth annual Mergers and Acquisitions Summit held in Shanghai on June 25. Ganster says China’s business is good for M&A activity, however it is still a maturing market that requires a much different approach from what many US companies expect as they consider expansion through acquiring a stake in China companies.

“US companies need to modify their approach in making acquisitions in China putting a great deal more emphasis on cultivating relationships with target companies. Acquisitions are in an embryonic state in China, and the rules of the game are not well established. Much more energy needs to be spent in the discovery stage, getting to know the stakeholders and what they want from a deal. Local Chinese management often goes into the discussions not fully understanding what they want,” says Ganster.

“In the US, the emphasis is placed on financial statements in a relatively transparent process. In China, relationship is the key filter through which the deal must successfully pass.” Ganster added.

China’s companies are searching for natural resources and big name brands to beef up their portfolio or supply chain in anticipation of increasing growth. Since 2007, outbound investment has grown from $26.5 billion to $52.2 billion in 2008, according to Reuters.

One example of this activity is the recent intended acquisition by Sichuan Tengzhong Heavy Industrial Machinery, a private machinery maker, to purchase the Hummer brand from bankrupt General Motors.

The Mergers and Acquisition Summit will be held at the Crown Plaza Century Park, Shanghai June 25 and 26.

Editors & Bloggers Note: A soundbite from Steve Ganster is available with a description of the bite below.
Soundbite with Steve Ganster on China Mergers and Acquisitions
IN: After I’ve identified…
OUT: Can’t do that successfully in China
Length: :38

A full interview with Steve Ganster on the Merger and Acquisition topic is available on the China Business Podcast

About Technomic Asia

Technomic Asia (www.technomicasia.com), a division of Tompkins Associates, is a business strategy and supply chain consultancy with more than 25 years of experience helping clients plan and execute Asian growth and operational strategies. Technomic Asia assists companies in entering the Asian market or in expanding their business by providing critical market insight, an understanding of business potential, and assistance in designing the optimum strategy for success.

Media Contact: Albert Maruggi amaruggi@providentpartners.net
612-325-8126

This entry was posted on Sunday, June 21st, 2009 at 11:25 am and is filed under China, M&A, Technomic Asia news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.