Investment Advisory Services

Our Investment Advisory helps companies realize their growth potential through M&As.We provide services on equity investments, either investments with the purpose of acquiring ownership of a company or acquiring strategic minority positions in the form of a joint venture (JV).You will find such services more important in China than in other markets due to the opaqueness of corporate information (or simply unavailability), lack of understanding of local practices, and the difficulty of government approval processes. 

Despite the above difficulties, many companies still consider M&A their best option in quickly driving growth.In 2004, China had 2,141 announced M&A transactions, involving a total value of US$24.54 billion (Thomson Financial).The economic growth will continue to help attract global companies to buy into local assets as a way to fast establish/expand their China presence.Successful domestic companies are increasingly seeking overseas acquisition strategies to find new source of growth under the intense domestic competition.

The structural changes in Chinese economy will last a long time before maturing into a market driven system.The M&A activities will continue to grow as a result.In keeping pace with a fast growing economy, the benefit of M&A is obvious.An “Acquire and Integrate” approach takes 6-9 months, while “Create and Operate” takes more than 2 years. 

Our Investment Services to Clients

In serving our clients, we can either collaborate with your investment bankers or agents, or work as your central communication point, bringing together accounting, legal and other services in one place to simplify the workflow for you.We have a wide connection with both international accounting & law firms, and with local ones.We respect clients’ choices in such service selection.

Typical workflow:

Deal origination:

We will work closely with you to actively identify creative ideas in implementing your M&A strategy.Once a client is committed to an assignment, we will work out and agree on a service proposal outlining service scope and projected timeline, and other relevant details.

Target screening / identification:

We have the best resources to help you identify the right fit.In an information short market, the target screening work can be painstaking without corporate information specialists.Our database can prove invaluable in capturing all relevant companies quickly and effectively.From there, we will work together with you to narrow down the search to a shortlist.We’ll perform a thorough analysis on each of the short-listed ones for you to decide on the best ones to approach.Whether it is an acquisition project, or a JV partner search, your initial search will be made easy with us.

Target contacting:

Target contacting is best conducted by 3rd party professionals due to the sensitive nature of M&As.An equity transfer will eventually impact on many aspects of a company, from its management to products internally, to suppliers and competitive reaction externally.A failed attempt may have the suitor exposed, and may have many undesired effects.An agent in between the two parties serves many good before the right opportunity is determined by the two sides to meet directly.

Deal negotiation, deal structuring:

We help to bring Western and local valuations together to achieve a satisfactory price for both parties.We also work through the board and management setup with our clients to make sure that all practicalities are in place for the deal.Cultural sensitivity and communication skills are our strength.

Deal financing:

Huaxia Credit has a wide banking customer base and close working relationship with both multinational and local banks.We are in a good position to help arrange bank financing if necessary.

Deal closing:

We will help to maintain the momentum and close the deal in our target timeline.Our expertise in managing government approval process, tax implications, administrative details, etc. will help us to see through the deal to its completion.

Our Advantages

Huaxia Credit is the 1st credit agency in China in 1993, and is the most established credit agency by any other measure.It has always maintained active connections with the industry and the government.Being part of “Huaxia International Credit Consulting Co. Ltd.” has rendered our Investment Advisory services several inherent advantages:we have direct and immediate access to an industry leading corporate information database (containing all China listed companies, 50,000 domestic companies, 120,000 foreign-invested companies.Information is being updated daily by a team of 200 staff); and we internally share the expertise of the 1st generation veteran professionals in the business of uncovering in-depth business information.Such information and expertise have made us one of the key suppliers for many investment and commercial banks, credit agencies and multinationals.By directly working with the “information OEM”, you will enjoy the same quality data, only with higher authenticity and speed.Our 200 plus staff around the country have extensive ground coverage for your practical needs.

As a home-grown Chinese company witnessing and maturing in the economic miracle of the past decade, we have gained tremendous firsthand knowledge and a deep understanding of the complexity of the China market and corporate practices.At the same time, our experience in serving customers from over 80 countries has given us a global perspective and sincere appreciation of other cultures and values.The combination of such knowledge and perspective has given us some unique insight, which can be the key for making your M&A transaction a success.