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Industrial

 


Acquisitions in the Industrial sector in China

Over the last 20 years, China’s industrial sector has been booming in the Chinese economy, to the extent that many industrial companies currently derive a big part of their global sales and an even bigger part of global profits from the Chinese market. However, although growth drivers and competitive pressures can be very different across different industrial subsegments, generally speaking the future will be characterized by steady but slower growth, increasing cost and margin pressure, and by consolidation. In addition, in specific industrial sectors, China’s economic reforms might weaken some of the protectionist mechanisms which are currently present. M&A activity will increase considerably in most segments, in particular in automotive components and services, certain types of machinery and also machinery components. The main drivers will be efficiency and scale in production and sales, and also access to specific clients (especially in automotive) or to the mid-market (the good-enough market).

Our qualifications in the Industrial sector

InterChina has been active in the industrial sector since our establishment in 1994 and we have participated in the rapid evolution of the sector. Our industrial sector group members represent hundreds of years of accumulated senior experience in the sector. This puts us in a unique position and allows us to deliver unmatched value to our industrial sector clients today. Our automotive clients include auto component manufacturers, service suppliers and third party institutions. Our machinery & equipment clients include machinery builders of all types, machine tool builders, equipment manufacturers, and a wide variety of industrial component manufacturers. The projects we have conducted for these clients range from complex acquisition advisory to joint venture establishments. Services include target and partner search, target due diligence, deal structuring, location selection, negotiation mediation, company establishment and government lobby.

Our approach to acquisitions in the Industrial sector

In the 20 years of our existence we have concluded over 50 acquisition and joint venture projects in the industrial space in China. This provides us with a very strong experience in a sector where most of the targets are medium sized private companies, with owners who come from a very different background than the acquiring company. We have developed a strong capacity in understanding the motivations and drivers of these entrepreneurs, and how to guide the acquisition process to a timely and successful conclusion.

  PDF Download "Machinery" | EN
  PDF Download "Automotive" | EN

A summary of typical clients provided below.

Typical Clients

Auto Service Suppliers

  • Dealer Networks
  • Roadside Assistance Service
  • Dealer Management Systems
  • Car Insurance & Assistance Systems
  • Car Repair Valuation Systems

Auto Component Manufacturers

  • Drive Train Components
  • Auto Lighting
  • Electronics & Telematics
  • Exterior / Interior Trim
  • Chrome-Plated Parts
  • Rubber Parts
  • Cast & Stamping Parts
  • Aluminum Wheels
  • Molds & Dies
  • Electrical Systems
  • NEV Battery
  • NEV Motor System

Other Parts of the Automotive Value Chain

  • Design & Engineering
  • Machine Tools For Auto Sector
  • Chemicals For Auto Sector
  • Metals For Auto Sector

Machinery Builders

  • Textile Machinery
  • Packaging Machinery
  • Printing Machinery
  • Paper Production Machinery
  • Construction Equipment
  • Mining Equipment
  • Agricultural Machinery
  • Elevators & Escalators

Machine Tools Builders

  • Machining Centers
  • Lathes, Grinders, Turning & Milling Machines
  • Presses & Forming Machines
  • Tube Cutting / Bending
  • Laser Cutting & EDP

Machinery Components

  • Engines
  • Pumps
  • Valves
  • Turrets
  • Molds & Dies

General Equipment & Services

  • Gas & Oil Equipment
  • Testing Equipment
  • Non Destructive Testing