China's fragmented automotive component sector is finally starting to consolidate via a clear increase in acquisition activity across the industry. During the panel discussion, InterChina will share its vision, based on accumulated M&A experience in the sector, on the major challenges in and practical solutions for acquisitions in the Chinese auto component sector.
The automotive s2ector remains, and will continue to be for some time, one of the most buoyant sectors in China. While organic growth has long been the main growth driver, inorganic growth through M&A will become increasingly more important as new and emerging factors – quality pressure, rising costs, and inaccessible financing - reshape the sector. The years ahead will be the defining period for automotive component companies to stake claims and shape their future positions in the Chinese market, the most important market in the world.
While now is the time to act for most companies, the acquisition process still presents its own challenges. In InterChina's experience, shared by its clients, two critical issues stand out amongst all the rest and often turn into deal breakers: valuation and compliance. It is often difficult to reconcile the high price expectations of the target with the buyer's valuation, while compliance raises a wide number of governance and, ultimately, valuation issues, which are not always easy to solve. In the discussion, InterChina will present a practical view on these inter-linked topics and offer recommendations for addressing them based on their successfully-closed deals in China.
This event is sponsored by InterChina, To learn more, please visit www.interchinapartners.com
The M2M series (Member-to-Member) is AmCham China's commercial event platform. M2M events are sponsored by companies seeking to share the latest information about their products, services, technologies or expertise with fellow AmCham China members. These company sponsored events are free for all AmCham China members and employees of member companies. The M2M program and any use of AmCham China's name and participation by AmCham China's personnel in such program in no event constitutes an endorsement, express or implied, of any product, service, program or company. AmCham China reserves the right to offer, modify, suspend or cancel the M2M events in its sole discretion.
Speakers:
Jan Borgonjon is one of the Founding Partners and President of InterChina, and an expert in the automotive and machinery industries. Since founding InterChina in 1994, Mr. Borgonjon's vision and leadership have established it as one of the leading advisory firms in China.
Raymond Su is an Associate Director with InterChina, and is currently the leader of InterChina's Automotive Sector Group. Mr. Su is based in Shanghai and has managed over 40 cross-border M&A projects in China.