Hong Kong - The Turnaround Challenges of SMEs in the M&A Process

10 February 2015 07:59 | Anonymous

On 10th February, 2015 PwC kindly hosted a breakfast for ATTA members and friends where the topic for discussion was the challenges facing SMEs in turnarounds during the M&A process led by Guy Facey, Chair of the Hong Kong Chapter.

The debate generated some interesting discussion from the floor.  Topics included:

  • is due diligence worthless or worthwhile and how to get value out of the due diligence process
  • the need to build trusting relationships with the owners and the need to find out what the owner really wants
  • the challenges of the private equity timeline -PE firms often impatient with the time it takes to take a firm to the next level
  • the difference between Western company valuation and Asian company valuation
  • whether the owner fully realises the impact of the "next stage";  that the works starts at an IPO, not ends and that bringing in PE investment will result in them losing absolute control
  • what makes a good entrepreneur does not necessarily make a good middle manager
  • the number of SMEs in PRC with no succession planning, either because the children are not interested, not capable or are not qualified to take over
  • how can corporates avoid killing the businesses they buy

With thanks to PwC for the generous hospitality.

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