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M&A target identification spearheads aggressive growth strategy in China

Find out how Third Horizon’s strategic analysis and assessment of an M&A target in China helped a global property firm make an informed decision not to proceed with a potential acquisition...

Background
An internal review at a large Australian and international project management and construction company identified two strategies for achieving significant growth in the Asia Pacific region:

  • set and work towards aggressive high level sales targets; and
  • indentify synergies and growth opportunities offered via the acquisition of a domestic target.

The company engaged Third Horizon to help develop a growth strategy to meet the aggressive sales targets for its Chinese operation, and subsequently review the market for potential acquisition targets.

Our Role
We worked in partnership with our client to develop an aggressive growth strategy for China.

Following an analysis of market sizes and trends, we developed a strategy to meet the aggressive targets. We developed an operational strategy to support the targeted growth, incorporating local partnerships, foreign alliances with market participants and key influencers.

The sales and marketing model was restructured to focus on the selected markets, and financial projections and business plans completed.

To support the acquisition of a domestic target, we conducted a market scan based on potential organisation and market synergies, and analysed key market trends to identified and growth market segments.

A scan of current players in these segments and quantification of post-acquisition synergies resulted in a list of best acquisition targets.

Results
The strategic groundwork saw the Chinese team restructured and key operational actions undertaken. Just as importantly, the acquisition was avoided as a direct result of the findings of our market and competitor assessment.

Additional information