EXPANSION FROM ASIA INTO US & EUROPE
The growth of Asian economies (ex-Japan) over the past twenty years has fueled the development of many large manufacturing and other companies that are beginning to spread their wings and look for appropriate expansion opportunities in North America and Europe.
Businesses in emerging Asian economies are eager to develop higher-valued products and services. The acquisition of companies in North America and Europe with more advanced industrial technologies, valuable intellectual property, recognized brands, and access to markets that would take years to build is a prime means to accomplish these goals. However, Asian companies looking to enter North America and Europe (and potentially acquire established companies) are unfamiliar with various capabilities they will need to compete effectively in these markets, including knowledge of public and investor relations, legal strategies, labor relations, and prevailing human resources practices. For example, CNOOC's bid to acquire Unocal in 2005 may have been doomed from the start, as the acquirer reportedly refused to engage a PR firm that could have lobbied members of Congress about their receptivity to a potential foreign acquisition in the sensitive US energy sector.
Furthermore, Chinese non-state-owned enterprises, having been crowded out of the equity financing market at home, are being forced to seek capital in Hong Kong, New York and London. Balaban Associates provides familiarity with SEC and FSA regulatory requirements, local accounting standards, and investor relations practices essential to a successful capital raising exercise in New York or London.
Balaban Associates is equipped to assist Asian companies venturing into North America and Europe in developing a strategy for effective market entry and in engaging qualified local service providers to insure access to expertise necessary to operate successfully in those markets. Assistance includes:
- Analyzing individual North American and European markets, identifying short and long-term opportunities, and developing appropriate market-entry strategies
- Identifying prospective local acquisition targets or joint venture partners and performing associated in-depth due diligence
- Managing the establishment of North American and European offices, arranging contracts with local service providers, and overseeing local management recruitment.
- Screening and selecting qualified local service providers in legal, accounting, public relations, investor relations, and executive search fields in North America and Europe.
- Reaching out to appropriate North America and European government agencies to insure that standards and prerequisites for local operation and financing have been met.
- Coordinating submission of required local governmental applications, regulatory and tax filings, and securities registration.