Europe – Asia M&A and Post Merger Integration

The management of a German AG wished to increase its market share in Asia via an acquisition that met the following criteria:
• The technologies should fit within the current company product portfolio
• It should facilitate new customer acquisition in Asia
• The overall return on Investment should be within 3 years

The approach adopted was:
• To screen candidates in China, Korea and Japan
• To shortlist the top 3 candidates
• To make contact and carry out due diligence.

The top candidate was found in South Korea and a successful deal was negotiated. The integration process was led by a temporary CFO appointed from within the parent company. A supervisory board was established with both German and Korean members to which a core integration team reported. The key areas of focus were R&D, sales and finance.

After 3 years, the sales volume was doubled with a significant increase in EBIT. The ROI target was delivered. In addition, it resulted in significant cross selling opportunities between Europe and Asia.