Services We Offer
Market Entry
Market Assessments
Partner Search
GCiS Methods
Samples
g
df
—————————————————————————————————————————————
Services - Partner Search & Due Diligence


The Wrong Way and the Right Way

Finding the right partner in China is a critical matter- whether this is a joint venture partner, a channel or technology partner. Getting set up with the right (or wrong) partner(s) is a key structural issue that could make or break one on this market. Too often, however, partnerships are made haphazardly, and/or without sufficient investigation of the candidate. In the first instance, "matchmakers" often recommend who they know, have heard of, or are connected with in some way. This way is lazy, or even disingenuous.

GCiS is not a "matchmaker." We use systematic research to fills both of these needs. We have a Partner Search Program to find the most appropriate partner, and to perform due diligence on final candidates. In a market as diverse and complex as China, this is the right way to do it.


Three Phase Approach

Screening and selection of partners is a practical exercise, with an explicit goal. Based on our experience doing this in China, we have designed a program consisting of three basic phases. Each phase is designed to optimize time, focus and coverage, and to provide opportunity for intelligent, cooperative segmentation and analysis. The objective is establish one or a set of partners that will cover best match the client’s requirements. This is what might be referred to as a “matrix matching process”. One axis of this matrix are product, business area (industry) and geography (such as in distributor searches).

The process will vary based on the type of search and the client. In some cases, for example, the total universe is 100 companies, and in some closer to 1000. In Phase 3, there can be as many as 50 interviews for a single target, and rarely fewer than 15. GCiS has a Database of over 70,000 companies in China, so we typically do not have to go out of house for Phase 1 Research. To summarize, the phases are:

Phase 1: Initial Screening (based on Client's criteria)- Filtering of companies for Ph. 2
Phase 2: In-depth investigation, often in-person- final selection for Phase 3.
Phase 3: Due diligence of final candidates- intensive research of each company (with
the company itself, competitors, vendors, creditors, etc.)

Key Data Points

Examples of categories covered in Phase 2 are show here. This is an example only, as different projects and needs will have different requirements.

o Company essential background info
o Company management
o Primary businesses
o Secondary businesses
o Current market view
o Market development view
o View of development of services
o Verification/correction of round 1 information
o Explanation & verification of IP
o Financials (as possible)
o Details of key projects
o Details of key partnerships
o Summary of general market reputation
o Interest in joint venturing
o Summary of how partnership should work
o Other (varies by project, company)

At the end, all results and analysis are collected in a study, and recommendations made. There is normally significant client interaction throughout the process, and consultation afterward. In addition, some companies choose to work with us in one part of this program (eg, Phases 1-2), and do the rest themselves.


Target Investigation/ Due Diligence

When evaluating companies in China for investment or acquisition, legal and accounting checks are not enough. The GCiS Investment Due Diligence Program is an extremely thorough system of primary research designed to paint the broadest picture possible of the target. In addition to standard company and management due diligence, this also consists of interviews with suppliers, customers, competitors, creditors, relevant government officials, or whoever has knowledge relating to the target. Key areas examined are:

o Financial
o Market
o Product & Technology
o Management
o Price Modeling

The final analysis is designed to provide as strong support possible for decision-making, with or without “Go/No Go” Recommendations. All analysis and recommendations are supported.

To receive further information on the GCiS China Partner Search, please e-mail us and request the China Partner Search PDF File.

————————————————————————————————————————————
 
Copyright © 2000-7 GCiS
All rights reserved        www.gcis.com.cn