One of the key aspects during the sales process is to find the balance between the price expected by the owner and what the investor is willing to pay. We use financial models and the latest enterprise valuation methods. We also take into account all intangible issues.
Our projects have a clear and strategic international focus, we are a multicultural team and we work together with reputed partners and investment funds from all over the world.
Barcelona Business Landing offers strategic support to national and international companies to develop their corporate projects in Europe, Asia and Latin America.
We offer cross border M&A advisory services for companies seeking to develop growth or divestment strategies.
We are a reference in Spain in Mergers and Acquisitions processes for SMEs and we specialize in national and international transactions, with a clear global vocation and long experience in the Chinese market.
We support companies throughout the entire M&A process, whether they do mergers, acquisitions or selling.
We use the latest business valuation models, and our objective is to maximize the value of operations.
We use a unique process to help us achieve our clients’ goals. This is based on years of experience and favorable results.
Whether in sales or acquisition operations, our philosophy is always based on:
We have a multicultural team, capable of working effectively in an increasingly globalized world.
Our multicultural team and more than 30 years of experience in international projects guarantee an appropriate execution during the Merger and Acquisitions processes.
Our commitment is to search for worldwide companies that meet the investment criteria of our customers and provide them with maximum value.
We develop the projects with total caution through a methodology focused on managing all the information in a safe and efficient way.
The M&A processes are complex and time consuming. With our support, we add value to the operation, and the company will not lose focus in his day to day business.
THE ROLE OF CULTURE IN INTERNATIONAL M&A
Culture, by itself, cannot be seen as a reason for international M&A deals failing to close, or giving the results expected by the parties after the integration. What makes culture a stumbling block in many M&A deals are the differences that arise during the integration.
The term “culture” is not strictly confined to the set of characteristics or norms that differentiate one country or nationality to another (although national culture can also get in the way of M&A, as will be discussed later). When we say culture in the context of international M&A, it specifically means the cultural gap in the corporate or organizational cultures of the merging companies. Organizational culture refers to that set of values, norms and assumptions that govern how the people within an organization act, interact, and work on a daily basis.
M&A denotes a partnership, or a relationship that both will benefit from. In order for a solid relationship to establish, it is important to know who your partner is. Looking at their culture is one way to go about it.
In order to understand the importance of culture awareness when it comes to international M&A, let us look into its role, or how it shapes mergers and acquisitions.
CONTRIBUTING FACTORS TO CULTURAL INTEGRATION
Like it or not, culture has a great impact on business. It also goes without saying that, in M&A, cultural integration takes a lot of work. It’s actually quite a sensitive area that people engaged in M&A must tread with caution. Here are some factors that would make cultural integration smoother, paving the way for international M&A deals.
When undergoing global or international M&A, there are possible two ways to prevent cultural differences from destroying a potentially successful merger or acquisition.
In the process of evaluating a potential M&A, it is highly recommended that the companies thoroughly assess the culture of their target company or acquisition. More specifically, they should evaluate whether the culture of the target acquisition is compatible with theirs. Not only will this smoothen the integration but increase the chances of the merger or acquisition becoming successful and profitable in the long run.
Whatever decision was made by the merging companies, it is important to choose only one culture, and commit to it. The parties should sit down and have a good talk about it, reveal the gaps that they are faced with and reconcile if there is a need to do so, and put the chosen culture into practice. Managing the culture actively is the next phase, and this is left in the hands of the managers and executives of the companies.
Culture clashes are already a given in any international or cross-border M&A. They could make or break the entire M&A process. Thus, it is important to pay as much attention to culture as you do to other aspects of M&A.
Last year, Chinese M&A market basically maintain the same level as 2017 with total transaction amount of 678 billion US dollars, according to the last report of PwC China.
The first half of 2018, China’s M&A market was quite active, mainly driven by megadeals, but the activities fell in the second half year.
Outbound M&A market
Suffered by the Sino-U.S. trade war and heightened CFIUS (The Committee on Foreign Investment in the United States) scrutiny, China’s outbound M&A volume in 2018 had a decline of 23% according to the 2019 Global M&A Outlook from JP Morgan. Despite this decrease, 2018 China outbound M&A volume was still roughly one-third higher than the levels before the 2016 peak in terms of total deal values.
In spite of the commercial tensions between the US and China, as well as some divestments from European or North American companies, China continues to consolidate the geographic and sectorial diversification policy for overseas investment.
Moderation in China’s economic growth continues to drive the need to identify attractive growth opportunities aboard. Reasonably abundant capital availability and financing alternatives still enable Chinese acquirer to have strong purchasing power. Many large-scale outbound transactions happened in 2018, including ANTA Sports’ proposed $6.4 billion acquisition of Amer Sports.
Even with capital control and measures to curb “irrational” outbound investments, the Chinese government continues to support strategic outbound investments. Enterprise Outbound Investment Regulations (“Order No.11”) enacted by NDRC (National Development and R took effect in March 2018, simplifying and formalizing administrative procedures for outbound investments, potentially shortening review cycle time.
Inbound M&A market
On the other hand, China inbound M&A had a year-over-year increase of 2% in 2018. China has been demonstrating its continued willingness to gradually open its market to foreign investors, as evidenced by the release in June 2018 of a new Negative List and associated measures to remove restrictions on foreign investors.
Chinese M&A in Spain
Spain was the sixth preferred European country for the Chinese investors in 2018 according to the report of Baker McKenzie. The investments in Spain have reached to 1,179 million dollars, which means an increase of 162% comparing to 2017.
Last year, large M&A deals happened in Spain, China also contributed one of them. The acquisition of 53.5% shares of Imagina Media by Orient Hontai Capital was the fifth large investment from China in Europe.
According to Baker McKenzie, the Chinese investor’s appetite has increased notably in Spain, Sweden, Canada, Germany and France in relevant sectors with high added value.
Trends for China M&A in 2019
On the background of the stability of yuan and the irreversible trend of cross-border cooperation, it expects several possible trends for China outbound M&A in 2019:
We develop the best acquisition strategy to buy the target company at the minimum price and with maximum confidentiality, effectiveness and pro-activity, presenting the best options to the client and minimizing cultural difference during the acquisition process.
We offer continuous advice to our clients, keeping them informed about the project development during all strategic phases of the process. This is crucial to achieve the success of the deal.
We use a unique process that help us to achieve the objectives of the clients. This process is based on years of experience and high results.
This is a crucial decision and we help you understand a M&A process and carry it out successfully.
The goal is to sell the company at the best price, offering the maximum value to your shareholders, employees, clients and suppliers. We always ensure that the operation is completed by keeping the client informed and advised in each phase of the process.
We maximize the company’s value by marketing the offers to potential international buyers and through a structured process. We create strong competition between the buyers, which will increase your company’s price.