Asian Mergers and Acquisitions (eBook)

Vikram Chakravarty is a Partner with A.T. Kearney's Singapore office and heads the strategy and corporate finance practice in Asia. He has more than fifteen years of consulting experience and has advised leading corporations across the world in strategy and competitiveness issues. Vikram has led or been involved in more than sixty projects in private equity, commodities, energy, industrials, consumer products, logistics, and financial industries. Prior to A.T. Kearney, he was the Asia Pacific head of strategy for Stern Stewart and, prior to that, Monitor's regional director of strategy and competitiveness. Chua Soon Ghee is a Partner with A.T. Kearney's Singapore office and a core practitioner in both the firm's strategy practice and its communications, media, and high-tech practice. He has more than fourteen years of consulting and industry experience working with clients across Asia, with a primary focus on helping global and Asian corporations develop successful growth strategies and offering advice on how to operate more efficient organizations. Soon Ghee also has deep industry experience in auto- motive, transportation and logistics, and agriculture.

Foreword ix

Preface xi

Acknowledgments xiii

Chapter 1: Asia Rewrites the M&A Rules 1

Deal Activity Is on the Rise in an Ascendant Asia 2

Natural Progression in M&A, the Asian Way 5

Tomorrow's Winners Are Moving Fast, Today 8

Chapter 2: Asian Companies Are Poised to Triumph in theMerger Endgame 11

The Drive Toward Consolidation 12

Asia's Fragmented Markets Create Opportunity 15

Asian Players Will Drive Local Optima 16

Consolidation Looms for Asia's Nascent Retail Sector16

The Tale of Two Soft Drink Markets: Why Local Optima Will Emerge21

Henan Brouhaha Heralds Beer Consolidation Drive 23

Banking and Telecom Sectors Dominated by Asian Champions 25

The Exceptions: Some Industries Likely to Be Dominated by GlobalPlayers While Others Resist Consolidation 26

Acknowledgments 29

Chapter 3: The Rise and Rise of Cross-Border M&A31

The Numbers Point East 34

The Drivers behind Asia's Cross-Border M&A Boom 37

The Risks Inherent in M&A Are More Pronounced in Asia 50

Acknowledgments 52

Chapter 4: Transforming Government-Linked

Companies through Mergers and Acquisitions 53

The Role of the Public Sector in Key Asian Economies 54

M&A: A Tool That Makes Both Companies and Economies MoreCompetitive 56

The Emerging Threat from the Private Sector 59

Meeting the Challenges 60

A Better Way to Achieve Transformation 67

Acknowledgments 68

Chapter 5: Getting It Right Before You Begin 69

Step 1: A Framework Helps Forward Planning 71

Step 2: Methodical Tracking and Screening Underpin SuccessfulM&A 75

Step 3: Choose Your Model: Classic M&A versus theAcquisition Factory 76

Step 4: Surround Yourself with Experts 83

Plan Early, Think Small: The Risk-Averse Route to Success 86

Acknowledgments 87

Chapter 6: Due Diligence 89

Risk Is on the Rise 90

Follow the Leaders, Learn from the Failures 91

Bridging the Due Diligence Gap 92

Due Diligence: The Classic Approach 94

Operations Due Diligence 95

The 100-Day Plan: A Road Map to Success 101

Jump-Starting the Clean Room 104

Acknowledgments 106

Chapter 7: A Guide to Successful Post-Merger Integration107

Merger Integration Overview: The Key Pillars of a SolidPost-Merger Plan 109

Merger Management: The Keys to Success 116

Synergy Value Capture: How to Get It Right 122

Merger Enablement: The Glue That Holds It All Together 127

Acknowledgments 135

Chapter 8: Culture Matters 137

It's Not a Small World, After All 138

National Culture and Communication: What the InterpreterWon't Tell You 142

Corporate Culture Matters: Making Mixed Marriages Work 145

Expect the Unexpected: Local Business Culture and Norms Can BeCostly and Surprising 147

How to Bridge the Culture Gap 148

It's Not as Hard as It Seems 159

Acknowledgments 160

Chapter 9: Conclusion 161

Now Is the Time to Go on the Offensive 162

M&A the Asian Way 162

The Key to Success: Planning Ahead 164

Think Globally, Act Globally 165

Appendix: PMI Tools 167

Prepare for and Execute a Perfect Day One 167

Launch Integration Structure and Project Teams 169

Launch Benefits Tracking and Reporting (BTR) Process 173

Launch Risk Management Process 178

Launch Change Management and Communications Processes 181

Notes 189

About the Authors 195

Index 197