欧洲咨询公司报告案例.pptVIP

sandboxhk\Restructuring\Executive slideset V3.ppt sandboxhk\Restructuring\Executive slideset V3.ppt Sample Case Background XXX is a global manufacturer who has so far established four JVs in China, namely A, B, C and D XXX wants to get more effective control on the four JVs through strategic merger Restructuring Rationale Increasing market challenges Industry and regulatory evolution Increasing competition Future business environment … Inefficient JV corporate structure Restructuring benefits Benefits to XXX Benefits to Chinese JV partners Benefits to Chinese government Restructuring Goals Short-term goals Align interests Improve flexibility, efficiency and economies of scale Enhance competitiveness Long-term strategic goals Key global manufacturing base and RD center … Initial Proposal for XXX Board Permission to enter into discussions with Chinese JV partners to restructure XXX China manufacturing operations into a single company No direct costs in connection with restructuring, indirect costs (such as disruption to operations or customer service) are expected to be small If possible, purchase all or part of Chinese partner’s stake in A in connection with the restructuring to increase operational control of A and increase XXX’s share of A’s profits Purchase % of A from Chinese partner Chinese partner likely to have high valuation expectations XXX will cap valuation of % A at US$ [mm] Current Situation XXX manufacturing units are highly successful and profitable. JV partners want to monetise their shareholdings in XXX JVs Domestic listed companies trade on high multiples and domestic stock markets lack high quality companies XXX JVs would be attractive listing candidates (notwithstanding dependence on XXX) Chinese Partner of A already in IPO process XXX needs to propose a compelling restructuring alternative to persuade Chinese partner to abort its IPO With China’s entry to the WTO, business environment in China will be increasingly more challenging. XXX’