Risk Management in China – a conversation with Kim Woodard (pt. 2)
January 22nd, 2010 by Kent KedlDownload this podcast
Length – 18:21
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
We are continuing our series on mergers and acquisitions in China through a conversation I have been having with Kim Woodard, a Vice President here at Technomic Asia and a specialist in China M&A. In over 30 years of doing business in China, Kim has done deals both from within the corporate environment – with companies like John Deere and AMP – and as an outside advisor. In the last part of this conversation we talked about the five key risk factors in doing a deal in China:
1. The acquiring company chooses the wrong target for the wrong reasons.
2. Failure to connect well and build trust with the shareholders, management, and other stakeholders of the target company.
3. Inability to bridge the valuation gap
4. The target company fails to meet due diligence expectations on financial documentation or on financial and commercial performance.
5. The C-suite in the acquiring company gets worried about post-acquisition performance.
Let’s get back into the conversation as we now turn to the best way to manage these risks …
