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2023 | Book

German-Chinese M&A Transactions in the SME Sector

General Conditions, Success Factors, Implementation

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About this book

M&A transactions are significantly more complex processes than the mere purchase and sale of goods - SMEs can quickly find themselves in unfamiliar territory - especially when it comes to multi-layered activities with players from completely different cultures, especially from China, as Germany's largest foreign trade partner. The need for knowledge in practice is correspondingly great. This edited volume therefore brings together, on a theoretical basis, the practical knowledge needed for the successful planning, implementation and integration of German-Chinese corporate takeovers in the SME sector. After a compact presentation of the economic background, cultural aspects of negotiation and regulatory framework conditions, the course of corporate transactions and their German-Chinese peculiarities are dealt with in detail. The book concludes with a guide to the core aspects of such transactions and an exemplary presentation of case studies. In generally understandable language and well illustrated, the success factors as well as possible stumbling blocks are revealed. A clearly structured and cleverly formulated handbook that every player should have at hand.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
In April 2013, the German federal government presented the strategy Industry 4.0”. This has the goal of equipping the German industry for the future and is dedicated to a number of global development issues. Two years later, the government of the People’s Republic of China presented the strategic plan Made in China 2025. The focus of this strategy is above all the further development of the domestic industry in order to make it internationally more independent and competitive.
Daniel Graewe
Chapter 2. Macroeconomic Background
Abstract
In this chapter of the book, you will learn important information about the economic background of German-Chinese investments. The Chinese projects of the “New Silk Road” and Made in China 2025 are mentioned.
Hicham El Bakbachi, Thomas Knie, Sebastian Oliver Ziesel
Chapter 3. Target Companies as Portfolio
Abstract
The Institute for Applied Economic Law at the NORDAKADEMIE University of Applied Sciences in Hamburg operates one of the largest M&A databases for the DACH region. In addition, a Bertelsmann study from 2018 analysed some data on this (Jungbluth 2018). In connection with the announcements in the Federal Gazette, it is thus possible to analyse a total of 227 transactions with Chinese involvement in Germany over the past ten years.
Marion Schmidt, Thomas Knie
Chapter 4. Regulatory Analysis
Abstract
In this chapter, the legal regulations governing mergers and acquisitions of companies by nationals of another State in Germany on the one hand and China on the other hand are described, whereas this chapter focuses on foreign direct investments (FDI). The special notification and approval requirements to be observed in China are described, as well as German foreign investment laws, which are to be observed in connection with foreign investments in Germany.
Matthias J. Annweiler
Chapter 5. Cultural Analysis
Abstract
This chapter looks at the cultural framework relevant to transactions between German and Chinese companies. A detailed analysis of Hofstede’s cultural dimensions, an examination of value systems and their impact on communication styles, various aspects of corporate management, as well as behaviour in negotiations in particular, opens up the possibility of understanding transactions between German-Chinese partners better.
Anne Grohs, Mona (Stechmann) Rösing
Chapter 6. Process of Corporate Takeovers
Abstract
This chapter presents the process model of a corporate takeover. The three phases re-acquisition-phase, transaction-phase and integration-phase are described in detail, including all considerations and preparations to be made.
Florian Eutert, Kevin Royla, Michael Rüller, Stefan Staegemann
Chapter 7. German-Chinese Transactions
Abstract
For over ten years, Chinese companies have been investing regularly in Germany. The strategy of the Chinese government, starting with the foreign policy opening and first market economy components in 1978 and continued after the financial crisis since 2009 in the form of large investment programs, suggests that there have been many successful transactions in recent years. However, they do not occur in the multitude, as the economic policy strategy of China would initially expect.
Florian Eutert, Philipp Lührs, Finn Vorburg
Chapter 8. Case Studies
Abstract
Four short case studies are used to illustrate typical different processes involved in German-Chinese transactions.
Ann-Kristin Thoms
Chapter 9. Guide for a Successful Cooperation with a Chinese Business Partner in M&A Business
Abstract
If a Chinese buyer is interested in the takeover of a German SME, a lot of questions arise for the management and the owners during the transaction. Therefore, this chapter should provide a short guide for shareholders/managers.
Philipp Waldenmeier, Batur Yar
Backmatter
Metadata
Title
German-Chinese M&A Transactions in the SME Sector
Editor
Daniel Graewe
Copyright Year
2023
Electronic ISBN
978-3-658-40537-3
Print ISBN
978-3-658-40536-6
DOI
https://doi.org/10.1007/978-3-658-40537-3