A leading Dutch financial newspaper has given substantial media attention to CPI’s expansion into Asia. CPI advises, among others, European and American companies on their acquisition activities in China. “When a client wants to make money from an acquisition it is essential that all processes are efficient and standardised”, Heidema explains.
Plenty of successful Chinese family businesses are considering their next growth move, increasingly through a merger with another company or by preparing for an IPO. Heidema is referring to a group of over 5000 successful family businesses, currently run by a generation looking for an exit, whose business has shown spectacular growth with earnings of hundreds of millions in Euros. For large Western companies an acquisition of this kind is an opportunity for fast growth in the Chinese market.
However, as with any acquisition, it is not without its risks. Differences, both culturally and on an organisational level can be significant. CPI advises, among others, European and American companies on their merger and acquisition activities in China. “When a client wants to make money from an acquisition it is essential that all processes are efficient and standardised”, Heidema explains. “Many of our clients are listed on the stock exchange and it is mandatory for them to comply with certain standards, both in finance and in governance.” The differences in the way key processes are structured can make a smooth transition seem impossible. CPI helps client with the implementation of Western standards of governance and accounting principles, inside these acquired companies.
CPI’s activities are not limited to mergers and acquisition. CPI supports clients in risk, finance and governance. Asian companies approach CPI when they are considering a local or international IPO and need to comply with local regulatory standards. For this reason, CPI works with a mix of local and Western professionals. “Our Western professionals can share specific expertise on Western standards for finance and governance. Our local professionals strengthen the client relation, both with local subject matter expertise and as a cultural bridge.
“There is so much we can learn from our Chinese peers. Their entrepreneurial spirit is mind-blowing”, says Heidema. The speed of growth, the guts they have to move forward, it is very admirable. In such an environment Heidema sees substantial opportunities for the continues growth of CPI.
CPI supports clients in Europe and Asia on risk, finance and governance from offices in The Netherlands, Shanghai, Hong Kong and Singapore. For more information on how CPI can help your organisation please contact our office at +31 88 10 10 200 or for inquiries from Asia contact Simone Heidema directly via mail email@example.com or mobile +31 (0) 622 41 65 39.