by Ten Have
China is the home to many affluent investors who are looking for opportunities with great potential. Western companies, both in Europe and the US seem particularly interesting. “Parties who are seeking a partner for merger or acquisition as well as business expansion and need an injection of capital, GAG will put you in touch with right Chinese investors '', says Agudo from Miami. “They are particularly interested in companies with growth potential.
We see many wealthy Chinese are no longer sitting on the sidelines. That has to do with the expectation that China's current top position in the global Manufacturing Competitiveness Index after 2020 will cease to hold the number one spot. Causes of this include rising labor, energy and continuing higher logistics costs to European and North American markets which will undercut the margins of Chinese products. Currently, North American goods produced in Mexico compete favorably with Chinese imports. Chinese investment in renewable energy and industrial raw materials indicate that investing in Europe can be an effective way for Chinese companies to reach European customers thus preventing high import tariffs and logistic costs.
Chinese investors are aware of the benefits of regional production. Investors, Chinese state-owned enterprises, and large private enterprises rapidly embrace a strategy of global mergers and acquisitions. They are looking for profit improvement and lower costs in logistics and for imported goods.
Chinese investors are working together with Global Advisors Group LLC in analyzing and completing strategic acquisitions in Europe, the US and Latin America. “It is a classic win-win situation, which ensures successful and mutually beneficial partnerships. Chinese companies want to gain a foothold in Europe and America, and Chinese investment is the lifeline for European and American companies in need of capital. This makes an important contribution to maintaining employment” emphasizes Agudo.
Many Chinese investors and executives are also particularly fond of the great Western work ethic, entrepreneurial spirit and innovation, which they see as the key drivers for competitiveness in their countries.
“They are not interested in interfering with daily operations and feel no need to leave their mark on Western culture. Their focus is more on the Western approach to productivity and the ultimate bottom line. '' remarks Agudo.
One major obstacle to business deals between China and the Western world are cultural differences. “We know the major cultural differences, and know how to act and how to bring cultures together for successful negotiations, '' says Eubanks. Global Advisors Group if required, can handle the negotiations before acquisition and helping the new owner address issues of strategy, cost planning, engineering, and retaining talent. “China has the money that Europe badly needs and the West offers interesting companies and markets. This works both ways. '' says Agudo.
Global Directors Group LLC is an advisory firm. Global Directors Group LLC is not a brokerage firm nor does it conduct any brokerage activities..