KPMG Industry Updates - Issue 6, November 2012
Privately owned enterprises (POEs) have gradually become an important force in China’s drive to globalization. However, constrained by experiences and capabilities, the globalization process has not been smooth. With their experiences in the global market, understanding of the overseas business environment and wide network, private equities (PEs) are ideal partners for POEs in their “going out” efforts. By participating in POEs’ overseas M&A activities, PEs can help these companies gain new technologies, brands and managerial experiences. Consequently, not only can POEs increase their global presence, but they can also bring the acquired capabilities back to the domestic market and exploit competitive advantages locally. Thus, the benefits for PEs are both in the global and domestic markets.