Financial Crisis, Is China'S Service Industry The Opportunity To Expand Overseas?

The global financial crisis has not only caused a certain impact on the sales of domestic garment enterprises, but also stimulated the enthusiasm of some domestic enterprises to collect overseas documents.

Theoretically, it is a good time for Chinese enterprises to expand and expand overseas.

Cheaper asset prices, stronger desire to sell, and undervalued potential values seem to indicate that this is a good time for domestic companies to "control" the world.

However, in practice, the risks and difficulties of overseas M & A expansion are still not small. Apart from the problems of cultural integration and management synergy faced by traditional overseas M & A, the "bottom up" service companies will have to ask themselves whether they are really at the bottom now.

Is the crisis going to deteriorate?

And are they capable of going through the crisis?

When it is impossible for us to confirm the depth and duration of the crisis, hasty action may drag down a well run enterprise.

As the SASAC has warned against state-owned enterprises in the past few years, we should be cautious about this crisis that has not happened for decades. "Now state-owned enterprises should not rush to merge, keep cash, and there will be many opportunities in the future."

Host: what do you think of the overseas mergers and acquisitions of Chinese clothing enterprises under the global financial crisis?

Xiong Xiong: as a result of the financial crisis, many entities in Europe and the United States are in financial difficulties. In order to alleviate the financial pressure of these enterprises, the European and American countries represented by the United States have to lower their investment threshold for foreign enterprises. Therefore, the current international market provides a rare opportunity for Chinese enterprises to "go out".

At present, China is more worried about the development of enterprises than its multinational corporations, especially the use of capital markets to make our enterprises stronger and bigger.

Do not make economic behavior ideologically and nationalized emotionally. M & A itself is the interest game between enterprises and enterprises, and economic behavior should be discussed in accordance with economic laws.

Chinese enterprises will go through the practice failure and go through the process of practice and failure and gradually succeed, but at the moment, it is a good time to start. Enterprises can not miss the opportunity of being unfamiliar because they are not prepared consciously.

China's excellent enterprises must take the lead and actively go out.

The leading enterprises in the European and American industries, technology leading enterprises and resource enterprises should be the main targets for Chinese enterprises to participate in the stock market.

Ding Baohe: This is an academic question. Whether overseas expansion or domestic expansion, now may be a good time.

At present, the domestic service enterprises are divided into three hundred and sixty nine, some are very dangerous enterprises, the environment has caused this crisis, some are seemingly no crisis enterprises, but it is not that it really has no crisis, but that there is no crisis in this period, it has other crises.

Enterprises without crisis may be an opportunity to expand and copy the bottom, but there is no universality. In the whole environment, most enterprises are tight.

The expansion is now a good time for this part of the business, but very few. Although the cost of expansion is low now, whether it is successful or not depends on whether the enterprise is smart and lucky enough.

Host: in comparison with the past, what risks do we have to face for overseas mergers and acquisitions?

Ding Baohe: at this time, we need to copy the bottom, we can not say that it is not an opportunity, but this opportunity is not bad.

For example, now that this situation is over, you think it's over, so you start expanding at home and abroad, but in fact, things are not what you think, and maybe the situation is even worse.

You must be smart, smart, and lucky. Maybe you are just the bottom of the crisis right now, and if you don't have luck, you may get deeper and deeper in this crisis.

Zhao Hongxuan: you can take the historical experience of Japan and the United States to see the risk of overseas mergers and acquisitions of Chinese enterprises.

In overseas mergers and acquisitions, Japanese companies were not very successful, while the United States was relatively successful.

Japan's enterprises that went out at that time were large enterprises, and their efficiency should be very high. However, they were still very difficult to succeed in overseas acquisitions, including cultural differences, language differences, and management methods.

The success rate of overseas mergers and acquisitions of American enterprises is even higher. This may be because many large American enterprises have been working on mergers and acquisitions for a long time, and they already have many experiences. They know where the key lies and where they are difficult.

American enterprises have specialized departments and teams in mergers and acquisitions. Their labor cost in mergers and acquisitions is very high, and many American enterprises' growth strategy is M & A.

Compared with the current situation in China, only a few large companies have teams specializing in M & A pactions.

Zheng Jingping: there is greater difficulty and risk in valuing the financial assets and liabilities of the acquired enterprises under the financial crisis.

The complexity of financial derivatives makes the operation and debt status of enterprises related to financial assets investment difficult to see clearly. How to evaluate the value of financial liabilities of the acquired enterprises is a difficult problem.

Host: what are we lacking for the overseas mergers and acquisitions of domestic garment companies?

Xiong Xiong: the Chinese government should encourage more domestic enterprises to actively participate in European and American entities. The government's supporting policies are also the key to the success of Chinese enterprises' overseas stock purchase in the financial crisis.

At present, the relevant approval procedures for overseas mergers and acquisitions of Chinese enterprises are very complicated, and the state should relax the examination and approval of cross-border mergers and acquisitions.

At the same time, a professional "overseas acquisition fund" can be set up by the private equity investment fund with mature overseas experience, PE, and the state-owned capital encouraged by social security funds, insurance funds and other policies. The NDRC is responsible for specific coordination.

Zheng Jingping: when it comes to mergers and acquisitions, it is best to choose a company with a clear entity economy and debt. In addition, we should consider using auditing and research institutions to assist mergers and acquisitions.

Yang Jing: editor in charge