Case Studies

Featured Case

Operational & Manufacturing Due Diligence of Chinese Acquisition Target

Key Takeaway:
Western client needed to develop greater Operational and Manufacturing Capabilities in China in order to meet growing product demand.

U.S. Manufacturer of environmental products had been supplying their Chinese customer base for approximately 7 years by exporting their products to China. They were at a crossroads and needed to increase capacity while reigning in costs.

East West Associates (EWA) reviewed 3 scenarios outlined by the Company:
  • Establish their own manufacturing and distribution plant in China 
  • Subcontract production to a Chinese vendor
  • Acquire a Chinese company with strong sales & marketing and manufacturing capabilities
Based on EWA’s Competitive Intelligence Investigation, the Western Manufacturer decided to pursue an Acquisition Strategy in China.

Perform an in-depth Operational and Manufacturing Due Diligence on the Chinese acquisition target in a 5-week time frame.

EWA’s Due Diligence included:
  • Management and organization of the Chinese Acquisition Target 
    • Profile of key executive managers at their 2 manufacturing plant and major sales offices
    • Workforce Profile, Senior Management Departures
  • Description of Business Operation and Conditions
    • Competitor Information
    • R&D Capabilities 
    • Corporate Strategic Plans
    • Marketing Capabilities
    • Sales and Distribution 
    • China governmental relationships
  • Business Relationships (with customers, vendors, employees)
  • Manufacturing weaknesses of the Chinese Acquisition Target 
  • Organizational structure 
  • Challenges of integration into the U.S. Company
  • Recommended Acquisition Strategy for Chinese firm
  • Negotiated acquisition
  • Drove the Integration Process
EWA completed the Operational Due Diligence on time and managed the integration in China for the Western Company.

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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