December 05, 2008
 

 


The InterChina Insight serves as our platform to share our views on investment, market and functional topics related to doing business in China. Forthcoming articles are listed below. If you have suggestions for topics in which you are interested, then please write to us using the General Inquiries Form on the Contact Us page.


M&A in China’s F&B: Today’s regional leaders could be tomorrow’s national stars
Given the recent skepticism facing domestic firms within the F&B sector as a result of the milk crisis this year, now appears to be as good a time as any for foreign investors to move on attractive domestic M&A targets. The obvious goal for investors at this point would be to identify strong brands acquire them and assume their large market share, however this strategy is infeasible given the insistence of the government to protect their rising stars and keep them ‘national.’

Plan B would be to identify a smaller brand that can be rolled out into a strong market competitor within the medium term. However the catch with Plan B is that all small brands inherently have a small piece of the pie so the emphasis rests on locating the ever-illusive company with innate ‘strong potential’ within a set of possible targets. To say the least, the market tricky, a well-thought out plan with an extra meticulous target evaluation is strongly warranted.
Brent Parson and Han Jing EN  |  2008-12-26



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