Consulting team discussing business
by Asia Perspective

Joint venture partner search generates swift China market entry and capital for investment

The client had decided to enter the Chinese market by means of setting up a Joint-Venture with a local company in order to decrease the time-to-market and to obtain the necessary capital for the investment.

Asia Perspective assisted the client in identifying potential partners for the proposed Joint-Venture. As a result of the project, the client successfully set up Joint-Venture with a Chinese partner that provided both local know-how and the needed capital for the investment.

Shaking hands on a joint venture deal

The client was looking to find a suitable Chinese Joint Venture (JV) partner that could enter a JV in the form proposed by the client, and also provide the initial investment and sufficient operating capital, as well as a pilot site for the first project.

Asia Perspective was approached by the client in order to assist in evaluating potential candidates and to subsequently negotiate with high-potential candidates in accordance to the client’s requirements, both in regards to mode of cooperation and time plan.

The project was broken down into three key tasks:

  1. Evaluate the JV candidates in regards to suitability as JV partner.
  2. Negotiate the terms of the agreements with the selected JV candidates and make sure that the client´s interests are being protected.
  3. Drive negotiations and JV preparation with the selected partner.

Joint venture process chart

Asia Perspective provided the client with weekly updates on negotiations along with suggested recommendations.

As a result of the project, the client successfully identified a suitable Joint-Venture partner in China that provided the capital needed to successfully follow through on the China market entry.

Setting up a Joint-Venture with a local partner in China enabled the client to efficiently build a presence on the Chinese market by leveraging the local partner’s already established sales channels and reputation on the market.

See more about our mergers & acquisitions services and our experience in a variety of sectors.

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