International transactions support
The effects of developments in 2020
The international markets will change significantly in 2020 due to the crisis. This crisis has shown that the international interdependence of both production and trade between various continents not only offers opportunities but also bears risks. Companies and even national governments will ‘source’ the production of essential goods differently or produce it themselves. They do this to reduce dependence on one single country or region. International trade with China in particular will change significantly. We take a deeper dive on this subject in a recent blog (in Dutch): Fusie en overnames in tijden van corona.
China and the world market
Although the situation in China was initially regarded with some suspicion, it has become clear that there is a global problem. Rearrangement of production facilities will take place around the globe. China plays an important role in this international playing field. An extensive dependence, but also connection, of China with the rest of the world has come to light. However, China will not want to give up this position any time soon and will encourage further internationalization of its production. Therefore, we expect that China will expand internationally through acquisitions. In addition, China will remain an interesting country to invest in in the medium-long term.
After all, the opportunities in China are unparalleled. The markets and financial resources are of a size we in Europe can only dream of. China is very interested in investing and is fully open to investment and cooperation in China. Its politics is also increasingly focused on this.
However, the international merger and acquisition playing field is not without risks. The chance that acquisitions fail is still far greater than the chance that they succeed. Chinese culture is significantly different from what we are used to.
International transactions support between China and the Netherlands
Guidance on international transactions between China and the Netherlands has a special dynamic due to the large cultural differences between the two countries. These cultural differences often become clear in merger and takeover processes. This holds true not only in the introduction and negotiation talks but also in the agreements and mutual relationships between parties. Likewise, knowledge of Chinese law, relations with the government, and language can also be barriers to closing transactions with Chinese companies.
As a niche, Clifton Finance has been facilitating international transactions between China and the Netherlands for years, in collaboration with Jomec and its partners in China. Jomec is a consultancy bureau with more than 20 years of experience in consultancy in relation to China.
Partners and networks in more than 15 countries
Dutch companies are increasingly crossing the border. They do this by starting activities abroad or by taking over companies. See our blogpost (in Dutch): Familiebedrijf vaker de grens over.
Clifton Finance has extensive experience in international transactions. More than half of our business is international. We work on an individual basis with partners and various international networks in more than 15 countries in Europe, America, and China. This enables us to shape international mergers and acquisitions.
International partnership Terra Alliance
Clifton Finance works together with Navarre Corporate Finance, a member of the international M&A network Terra Alliance. Terra Corporate Finance Alliance is an international alliance of independent Mergers and Acquisitions (M&A) and Corporate Finance advisory firms. The alliance was formed to enhance the ability of member firms to serve their clients through mutual cooperation and the sharing of cross-border perspectives and ideas.