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