Case Studies

Featured Case

Identification of a Chinese Acquisition Targeted for a Western Company

Key Takeaway:
U.S. Manufacturer of filtration and separation equipment for the Chinese energy and natural gas sector was looking to expand their commercial footprint in China.

Background:
At this juncture, the U.S. executives did not have complete confidence in their Chinese General Manager (GM) and senior plant leadership, particularly as it related to operational and financial transparency. East West Associates (EWA) and the company reviewed multiple options to determine the company’s best Operational and Manufacturing strategy in China. Available options were:
  • Close the existing plant and acquire a Chinese company with the necessary manufacturing capacity.
  • Expand the existing plant to meet required manufacturing capacity.
  • Maintain the existing manufacturing plant and subcontract to a 3rd party in China to manufacture products.
After careful analysis and in depth discussions between EWA and U.S. executives, the Client decided to acquire a Chinese company with manufacturing capacity and close their existing plant.

Challenge:
EWA needed to identify of a “short list” of Chinese companies that met the Company’s Operational and Manufacturing specifications and have expressed a willingness to be acquired.

Solution:
EWA and the Company jointly agreed to initially focus the Acquisition Target Search on potential Chinese suppliers and competitors. EWA visited the company's manufacturing operation to evaluate their manufacturing process and acquisition parameters, including:
  • Supply Chain and Procurement
  • Production Facility
  • China customer lists
  • Product Pricing
  • Distribution channels
  • Certified Quality Control Systems
  • Equipment and Machinery
  • Product Specifications
  • Raw Materials
Result:
EWA identified three well-vetted Chinese companies and made introductions. Initial negotiations are underway.


Commercial Due Diligence of a Chinese Acquisition Target

For a U.S. Manufacturing Company attempting to acquire a Chinese competitor, East West Associates (EWA) conducted a comprehensive Commercial Due Diligence of the target company and designed a Post-Purchase Integration strategy. EWA’s findings helped the client avoid a potentially disastrous investment.

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