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.

Background:
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.

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

Solution:
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
Result:
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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