{"id":18918,"date":"2012-02-16T15:39:52","date_gmt":"2012-02-16T07:39:52","guid":{"rendered":"http:\/\/www.chinamoneypodcast.com\/?p=645"},"modified":"2012-02-16T15:39:52","modified_gmt":"2012-02-16T07:39:52","slug":"anthony-siu-chinese-cross-border-deals-are-diversifying","status":"publish","type":"post","link":"https:\/\/www.chinalegalblog.com\/en\/2012\/02\/16\/anthony-siu-chinese-cross-border-deals-are-diversifying\/","title":{"rendered":"Anthony Siu: Chinese Cross-Border Deals Are Diversifying"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"100%\" height=\"166\" scrolling=\"no\" frameborder=\"no\" src=\"http:\/\/w.soundcloud.com\/player\/?url=http%3A%2F%2Fapi.soundcloud.com%2Ftracks%2F41518284&#038;show_artwork=false&#038;maxwidth=0&#038;maxheight=166&#038;auto_play=false&#038;show_comments=false&#038;color=ff0000\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" width=\"500\" height=\"281\" src=\"http:\/\/www.youtube.com\/embed\/4kr8h00Izcs?fs=1&#038;feature=oembed\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>In this episode of <strong>China Money Podcast<\/strong>, guest <strong>Anthony Siu<\/strong> discusses Chinese cross-border M&amp;A, what challenges Chinese companies face when doing deals overseas and how they can handles those challenges.<\/p>\n<p><strong>Q: Your firm focuses on middle market with transaction volume between fifty to 500 million dollars. And your focus is Chinese cross-border deals. Are you optimistic about this kind of deals in the current market?<\/strong><\/p>\n<p>A: Yes, I\u2019m very optimistic. In fact, we are spending majority part of our time working on cross-border deals between China and the U.S., and China and Europe. For Chinese companies, particularly those looking for advanced technologies, it makes a lot of sense (to look at these kind of deals).<\/p>\n<p><strong>Q: So Chinese outbound M&amp;A deal in 2011 was about 43 billion dollars, and that\u2019s up 12 percent from 2010. What\u2019s your outlook for this year?<\/strong><\/p>\n<p>A: Over the years, the growth has been around high single digits to low double digits. I expect that number will not change. We will see a tilt toward outbound side, where Chinese companies acquiring businesses overseas.<\/p>\n<p>In the past seven or eight years, we saw big deals in the natural resources, metals and mining sectors. We will see a diversification from these sectors to consumer and technology sectors.<\/p>\n<p><strong>Q: There have been a number of instances, where a Chinese company either failed to close a deal, dropped the deal, or couldn\u2019t secure financing. Are these kind of instances hurting Chinese companies\u2019 chances overseas?<\/strong><\/p>\n<p>A: Nowadays, it\u2019s very common for a seller to run a sell-side auction process, which targets a wide group of potential buyers. Chinese companies are only a subset of this global buyer universe. So that means any buyer\u2019s chance to have a closing will be smaller than if it\u2019s a one-on-one transaction situation.<\/p>\n<p>I don\u2019t think that only Chinese companies have a low probability of closing. But having said that, Chinese companies do face some challenges. One is the physical distance. Second is that the Chinese companies use a different type of valuation method.<\/p>\n<p>Then, we see some deals are done in a hurry without proper due diligence. Maybe the leadership at the Chinese company has a vision for international expansion. It\u2019s very typical for deals to be done with a handshake.<br \/>\n<strong><br \/>\nQ: What do Chinese companies need to do to improve, and how long will it take for them to become mature dealmakers?<\/strong><\/p>\n<p>A: The bigger Chinese companies will have a steeper learning curve. They will be very much up to speed. I don't think it will take a decade. It may take three to five years.<\/p>\n<p>For the smaller companies, it may take longer for them to learn the process. But as in all things, the Chinese learn very rapidly. I don\u2019t think this will be different.<\/p>\n<blockquote>\n<p><strong>Our Guest Today:<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-646\" title=\"anthony-siu-baird\" src=\"http:\/\/www.chinamoneypodcast.com\/wp-content\/uploads\/anthony-siu-baird.jpg\" alt=\"\" width=\"79\" height=\"105\" \/><strong>Anthony Siu<\/strong> is managing director at Robert W. Baird &amp; Co. Based in Shanghai. He is the head of Asia investment banking at Baird. Prior to Baird, Siu was a director of corporate advisory at Standard Chartered Bank, responsible for cross-border M&amp;A transactions in China.<\/p>\n<\/blockquote>\n<p>Visit <a href=\"http:\/\/www.chinamoneypodcast.com\" title=\"China Money Podcast\"><b>ChinaMoneyPodcast.com<\/b><\/a> for more great audio and video episodes covering important investment news and financial events in China. Follow us on Twitter <a href=\"http:\/\/www.twitter.com\/chinamoneypod\" title=\"Follow China Money Podcast on Twitter\">@chinamoneypod<\/a> subscribe to all episodes on <a href=\"http:\/\/www.itunes.com\/podcast?id=451002399\" title=\"Download and listen to China Money Podcast on iTunes\">iTunes<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this episode of China Money Podcast, guest Anthony Siu discusses Chinese cross-border M&#038;A, what challenges Chinese companies face when doing deals overseas and how they can handles those challenges. Q: Your firm focuses on middle market with transaction volume between fifty to 500 million dollars. And your focus is Chinese cross-border deals. Are you [&#8230;]<\/p>\n<p>Visit <a href=\"http:\/\/www.chinamoneypodcast.com\" title=\"China Money Podcast\"><b>ChinaMoneyPodcast.com<\/b><\/a> for more great audio and video episodes covering important investment news and financial events in China. Follow us on Twitter <a href=\"http:\/\/www.twitter.com\/chinamoneypod\" title=\"Follow China Money Podcast on Twitter\">@chinamoneypod<\/a> subscribe to all episodes on <a href=\"http:\/\/www.itunes.com\/podcast?id=451002399\" title=\"Download and listen to China Money Podcast on iTunes\">iTunes<\/a>.<\/p>\n","protected":false},"author":125,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,144,586,671,339,115,477,194,401,64],"tags":[3513,3744,3470,3472,3635,3514,3473,3515,3404,2750,3745,3479,3516,3517],"class_list":["post-18918","post","type-post","status-publish","format-standard","hentry","category-business","category-china","category-economy","category-finance","category-hong-kong","category-insurance","category-investment","category-news-chinese-law","category-shanghai","category-taiwan","tag-analysis","tag-anthony-siu","tag-asia","tag-chinese","tag-featured","tag-forex","tag-investing","tag-market","tag-news","tag-podcasts","tag-robert-baird-co","tag-stocks","tag-technical","tag-trading"],"_links":{"self":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/18918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/users\/125"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/comments?post=18918"}],"version-history":[{"count":0,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/posts\/18918\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/media?parent=18918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/categories?post=18918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chinalegalblog.com\/en\/wp-json\/wp\/v2\/tags?post=18918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}