27 May 2010

China Business Solutions Facilitate Multi-million Pound UK Acquisition Deals with Leading Chinese High-tech Firms.

A new stage in international acquisitions is now underway, as China Business Solutions works with a number of cash-rich Chinese firms actively exploring the UK’s high-tech market for M&A opportunities. This represents a sea-change in the direction of foreign direct investment, with both listed and non-listed Chinese firms anxious to locate and acquire the right kind of partner to complement their existing business development strategy. And it shows growing confidence in China’s domestic corporate landscape that technology sector firms are now seeking out ways to leverage both British expertise and European market potential as part of their product development strategy.

One Chinese based company recently contacted China Business Solutions with a GBP30 million investment fund available for overseas acquisitions, stating that they were interested in locating non-military radar and antenna equipment makers in the UK, and that they had interest in both hardware and software system synergies with their own product portfolio. Another leading Beijing-based IT services specialist is looking at acquiring a suitable local service provider to help support its own successful European growth strategy, and is seeking complementarities with its in-house team of technology specialists and application developers. Both examples illustrate a growing trend in outward investment from China, which is now expanding beyond the early deals that initially centred on securing mineral resources within energy utilities markets into sectors that closely overlap with the UK’s competitive international value proposition.

Understandably, these Chinese pioneers are taking a measured approach, exploring markets carefully and assessing candidate companies to achieve exactly the right fit, which is where China Business Solutions is able to add distinctive value to the process, having built a renowned reputation in successfully facilitating Sino-British collaboration between UK and Chinese firms. “It is our local market knowledge and experience of Britain?s advanced technology sectors that is most useful to the Chinese side”, maintains Ting Zhang, CEO of China Business Solutions, “whilst it is our understanding of China?s business culture and the associated partnership practicalities that is most helpful to the British side in negotiations”, she adds. Seeing both sides of the picture is important, and Ting makes the point that UK companies should now consider a more flexible approach to M&A opportunities, recognising that Europe and the US are no longer the only places from which potential suitors may emerge, especially given recent Eurozone weaknesses and US stock market jitters. “British firms should embrace Chinese investors with a positive attitude”, she says, “and should see these current opportunities as a way to become part of the world’s fastest growing economy”.

Anyone interested in exploring opportunities in more detail should contact Ting Zhang at China Business Solutions on +44 (0)1223 421968, or email tz (at) chinabusinesssolutions.com.