Approach Partners (AP) works with both Chinese and US companies, with the goal of identifying US companies that are valued, and positioned in the market, such that their acquisition by a Chinese parent company results in an accretive transaction that is beneficial to both parties. Although each company has its own unique requirements, typically Chinese companies looking to acquire companies in the US are focused on:
- Acquiring a specific technology, R&D and/or intellectual property.
- Acquiring an established distribution network and sales force.
- Benefiting from an established market presence or name recognition.
- An existing organization that has familiarity with US regulatory experience.
AP accomplishes its mission by primarily focusing on three areas.
- Independently identifying US companies that have a variety of features such as: a) a product line that is synergistic with the acquiring company’s business and will expand its reach into the US market, either by adding a revenue stream, or adding R&D that will yield future business, b) the US company may be undervalued for a variety of reasons such as inability to generate adequate cash flow to fund or expand the business, in the case of early stage public companies shareholders may be looking for an exit as opposed to further financing and dilution, in the case of private companies an owner may wish to retire, or other such reasons.
- Contracting with a Chinese acquirer to identify uniquely accretive US companies.
- Contracting with US companies that have decided that being acquired in in their best interests.
AP facilitates the transaction by consulting in the following areas:
- Developing a plan for the business combination and obtaining bridge or long-term financing where necessary.
- Developing a transaction plan. AP has relationships with the top Silicon Valley professionals in the areas of banking, legal work, IP protection, accounting and audit, SEC filings and compliance, and the human resource functions.
- Assisting in the acquisition transition to ensure that both parties’ expectations are met.
- Developing a post-acquisition plan and budget for the business combination. This is a frequently overlooked area that involves: a) identifying key personnel and implementing a retention program, b) recruiting new management where necessary, c) managing any financial or organizational restructuring or relocation and d) manage the combination in parallel with the acquiring management for a period of time to ensure a smooth transition.
AP is in a position to add unique value for the following reasons:
- AP is US based on the West Coast, and both mManaging pPartners have had successful careers in Silicon Valley companies at start-up, operational management, IPO, divestiture and acquisition levels.
- The Managing Partners have developed a professional network of the highest caliber during their careers, especially in the area of company financing.
- The Managing Partners have extensive US operating experience having successfully managed numerous companies, both private and public.