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Asian Mergers and Acquisitions: Riding the Wave



Asian Mergers and Acquisitions: Riding the Wave

Vikram Chakravarty, Soon Ghee Chua

ISBN: 978-1-118-24709-9 August 2012 224 Pages


A fascinating look at the unique nature of mergers and acquisitions in Asia

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 in—or simply understand— the rapid growth of Asian industry.

Foreword ix

Preface xi

Acknowledgments xiii

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

Acknowledgments 29

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

Acknowledgments 52

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

Acknowledgments 68

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

Acknowledgments 87

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

Acknowledgments 106

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

Acknowledgments 135

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

Acknowledgments 160

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

Notes 189

About the Authors 195

Index 197