Asian Mergers and Acquisitions: Riding the Wave
The Asian market is heating up, and both local and international firms are looking to get in on the mergers and acquisitions (M&As) that are poised to play a pivotal role in the restructuring of all manner of industries. This restructuring will increase competitiveness, but to make the most of it you need to understand why M&As in Asia are unique. With Asian Mergers and Acquisitions: Riding the Wave in hand, you have everything you need to do just that.
Packed with invaluable information on how Asian M&As work, the book points to the fragmented nature of Asian countries, markets, and customers, the rise of Asian economies and firms, and the growth of cross-border business driven by the need for companies to gain access to markets, technologies, and brands as key elements for understanding the market.
- Lays out guiding principles for Asian M&As, including identifying the drivers for creating value, mitigating cultural differences, getting the best expertise in pre- and post-merger efforts, and more
- Contains everything investors need to know to understand coming changes in the Asian market
- Details how Asian M&As differ from those in other countries
Providing clear insights into Asian mergers and acquisitions and their inner workings, including do's and don'ts for successful investment, this book is essential reading for anyone looking to cash inor simply understand the rapid growth of Asian industry.
Chapter 1: Asia Rewrites the M&A Rules 1
Deal Activity Is on the Rise in an Ascendant Asia 2
Natural Progression in M&A, the Asian Way 5
Tomorrow’s Winners Are Moving Fast, Today 8
Chapter 2: Asian Companies Are Poised to Triumph in the Merger Endgame 11
The Drive Toward Consolidation 12
Asia’s Fragmented Markets Create Opportunity 15
Asian Players Will Drive Local Optima 16
Consolidation Looms for Asia’s Nascent Retail Sector 16
The Tale of Two Soft Drink Markets: Why Local Optima Will Emerge 21
Henan Brouhaha Heralds Beer Consolidation Drive 23
Banking and Telecom Sectors Dominated by Asian Champions 25
The Exceptions: Some Industries Likely to Be Dominated by Global Players While Others Resist Consolidation 26
Chapter 3: The Rise and Rise of Cross-Border M&A 31
The Numbers Point East 34
The Drivers behind Asia’s Cross-Border M&A Boom 37
The Risks Inherent in M&A Are More Pronounced in Asia 50
Chapter 4: Transforming Government-Linked
Companies through Mergers and Acquisitions 53
The Role of the Public Sector in Key Asian Economies 54
M&A: A Tool That Makes Both Companies and Economies More Competitive 56
The Emerging Threat from the Private Sector 59
Meeting the Challenges 60
A Better Way to Achieve Transformation 67
Chapter 5: Getting It Right Before You Begin 69
Step 1: A Framework Helps Forward Planning 71
Step 2: Methodical Tracking and Screening Underpin Successful M&A 75
Step 3: Choose Your Model: Classic M&A versus the Acquisition Factory 76
Step 4: Surround Yourself with Experts 83
Plan Early, Think Small: The Risk-Averse Route to Success 86
Chapter 6: Due Diligence 89
Risk Is on the Rise 90
Follow the Leaders, Learn from the Failures 91
Bridging the Due Diligence Gap 92
Due Diligence: The Classic Approach 94
Operations Due Diligence 95
The 100-Day Plan: A Road Map to Success 101
Jump-Starting the Clean Room 104
Chapter 7: A Guide to Successful Post-Merger Integration 107
Merger Integration Overview: The Key Pillars of a Solid Post-Merger Plan 109
Merger Management: The Keys to Success 116
Synergy Value Capture: How to Get It Right 122
Merger Enablement: The Glue That Holds It All Together 127
Chapter 8: Culture Matters 137
It’s Not a Small World, After All 138
National Culture and Communication: What the Interpreter Won’t Tell You 142
Corporate Culture Matters: Making Mixed Marriages Work 145
Expect the Unexpected: Local Business Culture and Norms Can Be Costly and Surprising 147
How to Bridge the Culture Gap 148
It’s Not as Hard as It Seems 159
Chapter 9: Conclusion 161
Now Is the Time to Go on the Offensive 162
M&A the Asian Way 162
The Key to Success: Planning Ahead 164
Think Globally, Act Globally 165
Appendix: PMI Tools 167
Prepare for and Execute a Perfect Day One 167
Launch Integration Structure and Project Teams 169
Launch Benefits Tracking and Reporting (BTR) Process 173
Launch Risk Management Process 178
Launch Change Management and Communications Processes 181
About the Authors 195
Vikram Chakravarty is a Partner with A.T. Kearney's Singapore office and heads the strategy and corporate finance practice in Asia. He has more than fifteen years of consulting experience and has advised leading corporations across the world in strategy and competitiveness issues. Vikram has led or been involved in more than sixty projects in private equity, commodities, energy, industrials, consumer products, logistics, and financial industries. Prior to A.T. Kearney, he was the Asia Pacific head of strategy for Stern Stewart and, prior to that, Monitor's regional director of strategy and competitiveness.
Chua Soon Ghee is a Partner with A.T. Kearney's Singapore office and a core practitioner in both the firm's strategy practice and its communications, media, and high-tech practice. He has more than fourteen years of consulting and industry experience working with clients across Asia, with a primary focus on helping global and Asian corporations develop successful growth strategies and offering advice on how to operate more efficient organizations. Soon Ghee also has deep industry experience in auto- motive, transportation and logistics, and agriculture.
In their new book, ‘Asian Mergers and Acquisitions: Riding the Wave’, Chakravarty and Chua, Singapore-based partners of global management consulting firm A.T. Kearney, set out the best ways to think about mergers and acquisitions (M&A) and associated industry consolidation, and explain how to make mergers and acquisitions work for Asian companies in their drive to become regional and global champions, as well as global companies wanting to grow by M&A in Asia.
“For the past decade or so, we have been mulling over how to improve the competitiveness of Asian companies. We see M&A as a critical driver of industry structure and future competitiveness in this region. The Asian M&A story is expected to unfold rather differently and perhaps unpredictably, from the patterns established in the developed markets of the West. Hence we felt compelled to lay out our thoughts in this book,” said the authors.
This book lays out several guiding principles and enablers for Asian mergers and acquisitions, which revolve around identifying the levers for value creation, mitigating cultural differences, getting the best expertise in pre and post merger and controlling risks through due diligence.
With real life case studies on everything from the Chinese soft-drinks sector to the Indian acquisitions in tea, cars and pharmaceuticals, the authors use facts and figures to illustrate what it takes to navigate the tricky mergers and acquisitions waters and successfully sail through mergers and acquisitions execution.
Mark Mobius, executive chairman of Templeton Emerging Market Group said, “Asian Mergers and Acquisitions is a must-read for anyone involved in finance. It’s an excellent comprehensive look at what is now happening with M&A in Asia, what we can expect in the coming years, and, more importantly, how to successfully execute a successful merger or acquisition.”
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