International transactions support
Clifton Finance has extensive experience in international transactions. More than half of our practice is international.
The international merger and acquisition market has shown a dynamic picture in recent years. Due to the covid crisis the market stagnated but recovered sharply in the following years. Internationally operating companies have become more aware of business risks. Perhaps the most important is distribution. The recent period showed that dependence on a complex logistics chain creates increased risk. To mitigate these risks, there is a great need for sourcing in the home region instead of just-in-time deliveries from various continents. Companies are literally shortening the chain by looking for reliable suppliers. Close to home, but also in the classic sense of the word by outsourcing less and thus vertically integrating also through acquisitions.
Scale becomes more relevant
Price increases of raw materials and transport, but also the limited availability of personnel are important developments. Driven by the increasing challenges and increased risks, consolidation is taking place, especially at an international level.
But digitalization, remote working and its facilitation are also making companies rethink their business models. All this has a positive effect on the international mergers and acquisitions market.
Dutch companies are operating more and more internationally
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 can play an important role in mapping the markets and target companies. We also naturally guide the international approach of the candidates.
International transactions guidance between China and the Netherlands
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 agency with more than 20 years of experience in consultancy in relation to China.
China still occupies an important place in the international playing field. It has become apparent that there is an enormous dependence on, but also an interdependence with, China with the rest of the world. China will not want to give this position up quickly and will encourage further internationalization of their production. We expect that China will develop further internationally through acquisitions. In addition, in the slightly longer term, China will remain an attractive country to invest in.
However, international transaction guidance between China and the Netherlands is not without risks. The chance that takeovers will fail is still much greater than the chance that they will be successful due to the major cultural differences between China and the Netherlands. In mergers and acquisition processes, these cultural differences often become painfully clear. In the introductions and negotiations, but also in the agreements and the mutual relationships between the parties. Knowledge of Chinese law, government relations and language can also be a barrier to closing transactions with Chinese companies. We can remove these barriers for you.
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.
In addition, we have been working on an individual basis – often for more than 20 years – 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 like no other.