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Post event insights: The Changing M&A Landscape in Greater China

Written by Nicole Revers | 16 September 2019

SI Partner’s Alistair Angus was joined by an expert panel of speakers for a discussion on the rising prominence of Greater China in the changing creative and technology landscape. The seminar was held in conjunction with Ashurst in Hong Kong.

The panel, which included Chin Yeo, Partner at Ashurst, Penny Burgess, WE Communications CEO China and Thomas Stavonhagen, CEO/founder of id creations discussed the increasing opportunities available to creative businesses based in Greater China, the emergence of new global buyers, the attractiveness of Asian agencies to these new acquirers, what acquirers want and how businesses in Greater China can prepare for cross-border acquisition.

 

INSIGHTS:

Opportunity in Greater China

  • 9% of global buyers are targeting acquisitions in mainland China and Hong Kong in the next 18-24 months.
  • 72% of those looking to Greater China are seeking to acquire new talent.
  • The global acquirer landscape has developed from 50 to 1000+ buyers

An outlook on the current macroeconomic scene

Trade wars and protectionism are currently impacting industries in Greater China. The digital industries are seeing the most growth and investment opportunities, with a focus on digital advertising, online content and e-commerce.

Due diligence considerations in Greater China

The developed market mindset, lack of regulation in new areas- a regulatory risk, data security, compliance with PRC law, books and records, ownership of IP, ability to enforce IP rights.

How to prepare for sale

  • 'Get your house in order': restructuring, cleaning the capitalisation table, senior employee incentive structures
  • Test key customer relationships to ascertain how the business will survive a change of ownership
  • Get professional advisors involved early to guide you through the process

 

Alistair Angus, Partner at SI Partners leads the firm's consultancy and M&A advisory practice in Asia-Pacific, specialising in connecting businesses with global investors and partners, and creating innovative deal structures designed to match stakeholders’ objectives.