|
Direct Investment
Successful business expansion through acquisition
involves a substantial amount of creativity and diligence
to ensure the proper processes have been performed. Unlike
a joint venture where a new entity is created with the contribution
of assets by two or more separate entities, business acquisition
involves the acquisition of tangible and intangible assets,
liabilities and business of an existing company. Therefore,
although understanding of the existing company background
and business practices is still required. Foreign investors
must avoid buying the target company's problems and the target
company must ensure that the investors are reliable. It is
the role of First Asia Finance to interact with both the buyer
and seller to achieve the synergy and benefits characteristic
of the asset acquisition.
| BENEFITS
TO TARGET COMPANY |
- Working capital availability
- Improved cash position
- Access to capital markets
- Access to technology
- Increased distribution channels
- Greater market access/share
- Talent / people
- New management system
|
| BENEFITS
TO INVESTOR |
- Eliminates time cost and energy of starting a new
business
- Physical facilities can be viewed
- Available financial statements
- Established suppliers and distributors
- Experienced management & staff
- Established goodwill & brand name
- Established market
- Proven products & sales network
- Immediate return on investment
|
First Asia Finance also provides the right
investment funding to the right target company. Before we
match target companies with target investors, First Asia rforms
its unique Acquisition Screening Process to maximize the benefits
to both the target company and the investor.
- PROJECT - ASSESSMENT
- Why buy a business rather than start a new?
- What are the expected results of the combined business?
- IDENTIFICATION OF TARGET
- What characteristics are expected of the target company?
- What characteristics are expected of the investor?
- SELECTION OF STRATEGY
- How much cash is required?
- Where and When can funds be accessed?
- PRICING / VALUATION
- How is the value of the business assessed?
- Which valuation method should be used?
- NEGOTIATION OF DEAL STRUCTURE
- What terms should be included in the purchase agreement?
- Are the deal terms fair to all parties involved?
|
