In China, manufacturing is the least merged industries including home appliances, steel, mechanics, chemicals, metallurgy, etc. Their scale benefit is low and have the motivation to merge. In recent years, most leading companies achieved diversification and specialization through M&A with helps from financial capitals.
However, in the beginning phase of M&A, many companies only evaluate the legal and financial sectors of their targets, and ignore the potentials for business improvement and the opportunities for business cooperation. Therefore, they are lack of clear strategic objectives to drive deeper M&A.
Leaping point helps client corporations, in the early stage of their acquisitions investment, comprehensively learn the value of target firms from the legal and financial perspectives while performing in-depth evaluations and planning regarding cross-sales, cost synchronization and technology upgrading, thereby identifying the intrinsic value and real risks of target firms.
Perform evaluations over the industry and the target firms (independent analyses and comparisons with applicable major benchmarks and comparable data) in order to obtain independently verifiable and observable information and data ( past corporate business performance, future corporate performance forecasting and major qualifications) related to the following aspects:
- Sales revenue (major products, sales, major clients and product development) and/or
- Operations (major facilities, operational process, purchasing, human resources, costs) and/or
- Other aspects that need to be verified by due diligence
Special value creation opportunities and other optional approaches (for example, the performance enhancement for sales revenue and profitability)
Interactions with the investment consultants and the management groups of target firms