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Introduction and Features of Mergers & Acquisitions

Date: 2008-10-15 13:17 | Author: Linden Co. Ltd. | From: | Read Times: 30

The core of Linden's work is mergers & acquisitions, and at the heart of the mergers & acquisitions process is financial advisory. A typical M&A transaction involves target search, deal structuring, valuation, board negotiations, and closing. PathToChina has advised and managed over one hundred M&A transactions over the past five years, covering a wide array of industries. In the process, we have advised both foreign and Chinese companies, representing both the Buy-side and the Sell-side.

Buy-side Representation

Advising Foreign Firms

Leveraged Transactions

Post-merger Integration

Buy-side Representation

At PathToChina, our capabilities in advising buy-side transactions, both inbound and outbound, are demonstrated by our long record of successful deal closings. Oftentimes in a buy-side situation, the investor is perplexed at his inability to identify the most suitable targets, overwhelmed by the complexity of transaction structures, frustrated by high valuation requests from the Target, and constantly gets bogged down in lengthy board room negotiations and legal, regulatory and approval mazes in foreign countries.

PathToChina typically starts a Buy-side engagement by formulating a transaction strategy which encompasses factors of markets, operations, finance, organization, valuation, legal, regulatory structures and with a contingency plan for unexpected events. We will then execute the transaction by first canvassing the entire market to understand the competitive dynamics and short listing the top target candidates from our search.

We have many years experience in structuring, evaluating, and negotiating the most complex deals involving multiple markets and jurisdictions. We take pride in closing the transactions at the most favorable terms available for our clients. More than once we encountered situations where the original transaction failed due to unforeseeable events, and we successfully closed better alternative deals for the client.

PathToChina's strengths in Buy-side advisory comes from our strong technical capabilities, extensive transaction experience, and a web of senior level global and local relationships which enable us to deliver Buy-side advisory of the highest quality in the world. Our people deliver. - [ Back to Top ]

Leveraged Transactions

PathToChina provides complete support for Management Buyouts (MBO) and Leveraged Buyouts (LBO) targeting firms in or outside of China. When management, and in certain cases, outside institutional investors, take over control of a firm, they take on many risks including miscalculated valuation of the target company, heavy debt burden at very high interest, hostility from the existing management, and misalignment of incentives between management and shareholders.

In an LBO a company is acquired by a person or entity using the value of the company's assets to finance the acquisition of a controlling interest in the company. At PathToChina we work closely with our clients to understand their objectives and criteria in acquiring a company, organize the necessary bridge financing, and manage the syndication of lending. Our team will help you structure a business with stable free cash flows so that debt serving will not present major challenges in subsequent years.

At PathToChina we have solid relationships with lenders and investors around the world who can give our clients support to acquire their targets and the capabilities to execute the transaction at the most favorable terms. We will work with your management to create a strategy that will ensure gains in efficiency, synergy, and improved leadership.

PathToChina's strength in advising leveraged transactions is rooted in our extensive MBO/LBO deal experience, close relationships with financial institutions around the world, and our intimate knowledge of different industrial segments. We understand that our clients want a solution that will not only consummate a successful deal but also guidance in restructuring the company post-transaction. Our people deliver. - [ Back to Top ]

Advising Foreign Firms

Advising multinational companies China M&A and investment activities has been the core of PathToChina's business. In the past ten years, we have worked with companies from over 50 countries, serving as their market entry platform as well as their advisor in subsequent expansion and restructuring activities.

Foreign companies entering China are often attracted by the enormous business opportunities, viewing the country both as a great market and as a suitable manufacturing base. Their anxieties arise, however, when they are unable to reach educated decisions due to lack of reliable data and information, or differ with their local partners in management philosophies and valuation framework. Business differences are further complicated by cultural differences, making lucrative business opportunities elusive. Many foreign companies are either caught in situations where they are unable to resolve a decision thus losing time and opportunity, or in entering into a merger or investment which they later find out could have been structured and negotiated more favorably.

PathToChina's strengths in advising foreign investors in China are derived from experience and our local yet highly international teams. Senior members of the firm bring tens of years' front line experience in international investment banking, and strategy and operations with various multinationals; associates at the firm form teams composed of different nationalities and industry knowledge. In the past five years, we have employed transaction vehicles such as outright acquisition, buyout, joint venture, technology transfer, long-term sourcing, Greenfield, and alliances for the deals we represented and advised.

Like all of our engagements, an PathToChina project typically starts from the formulation of business strategy, followed by a transaction process which we manage, and results in win-win situations for all the parties. - [ Back to Top ]

Post-merger Integration

The closing of an M&A transaction is only the beginning of new challenges. Once the honeymoon of a merger is over, the new management will immediately face issues related to businesses and organizations. As an integral part of our advisory service, PathToChina will continue to work closely with our clients in integrating businesses, organizations, human resources, and logistics, while maintaining relationships with the government and managing public relations. Our involvement in post-transaction integration is limited to the Board level.

PathToChina approaches post merger integration by focusing on the optimization of operations, skillful utilization of human resources, restructuring the organization, and forging new relationships between the two companies. The post-merged company needs to be re-organized to release people's full potential. Same as our efforts in integrating the people in the merged businesses, we also work closely with the client in integration the merged organizations. Operations support revenue. Working with our client in optimizing operations is part of our commitment to end to end solutions.

PathToChina's strengths in post-merger integration advisory comes from our strong technical capabilities, extensive transaction experience, and a web of senior level global and local relationships which enable us to deliver restructuring, organization, and human resource solutions of the highest quality in the world. Our people deliver. - [ Back to Top ]

Feel free to contact us if you have any question or need of any assistance.





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