• Service: Audit, Advisory
  • Industry: High Growth Markets
  • Type: White paper
  • Date: 4/5/2011

World Class Aspirations: The perceptions and the reality of China outbound investment 

As Chinese companies make more investments overseas, they are building up a reserve of experience in all areas of deal making. Investment is focused on an increasingly wide range of objectives, including scaling revenues through growth in new markets, diversification, and progressing along the value chain.
The global downturn did little to halt this trend, Chinese companies completed 60 deals in developed markets alone during 2009, with a further 39 deals in the first half of 2010. China now ranks as the fifth largest global outbound investor with a total volume of USD 56.5 billion in 2009, compared to a ranking of twelfth in 2008, according to the Ministry of Commerce.

In this report, we have set out the common elements of world-class M&A or investment. We believe there are many common traits exhibited by leading multinationals, international private equity firms and serial deal-makers. This best practice can be defined in terms of overall vision and strategy, target identification and capability, negotiation and execution, use of external support , and implementation and integration.