罗兰贝格-结构咨询报告
2020年7月18日星期六
D1. General options and preselection
•In China, as far as foreign investment enterprise is concerned, there exist three main restructuring categories
•Examples
• Bosch Siemens • Siemens • Bayer • Henkel • ABB
• Dinova • BOSCH Thermo Technik • Linde forklifter
• Whirlpool’s refrigerator JV in Beijing
• Peugeot Guangzhou • Liebherr • Siemens
•Charact -eristic
•Option 1: Turnaround of JV
•Option 2: Equity structure restructuring
•Option 3: Withdrawal
• Performance improvement without changing the equity structure
•Conclusion
•Potential options
•Killer criteria
• Solve key problems • Secure future success
•General • Cost • Time • Risk
•Hard criteria
•Integration (GSHA-GDAI) • Sales & marketing • Management • Others
• Performance improvement with equity structure change – Buyout
• Withdrawal from existing investment projects – Sell out equity – Termination – Bankruptcy – Freezing (walk away)
The general methodology is to filter options with killer criteria and hard criteria to screen out restructuring alternatives
•Procedure •Pre-selection •In-depth evaluation
•Turnaround of JV
•Restructuring of investment projects
in China
•Equity structure •restructuring
•Withdrawal
On the basis of favorable results of market and competitive analysis, option category I and II are most commonly used for companies’ long-term development
•Restructuring alternatives •Implementation
At pre-selection stage, turnaround, sell out equitykiller criteria
•Pre-selection
•I. Turnaround
•Chinese Partner in?
•Yes
•Killer criteria
•Solve key •Secure future
problems
success
•No
•No
• II. Equity structure restructuring
• - Equity • bIIuI.yWouitthdrawal • (1) Sell out equity • (2) Termination • (3) Bankruptcy • (4) Freezing
•Termination
• To cease operation and liquidate the JV
•Bankruptcy
• To file bankruptcy and liquidate the JV. If the creditor is JV’s foreign parent company, to file bankruptcy by creditor is theoretically possible but practically infeasible in China
with local government, thus causing potential hurdle for future presence and trouble to GDAI
•Backup
•Buyout
•Definition of some options
• To buyout the equity ownership from Chinese partner, thus turning the JV into a wholly foreign owned enterprise (WFOE)
• Geberit gains full control
• It’s almost impossible to find a buyer • It opens the way for a new start • It opens the way for a new start • Freezing will ruin Geberit’s relation
• No
• Yes • No • No • Yes
• Yes
• No • Yes • Yes • No
• Yes
• No • Yes • Yes • No
•Pass? •No
• Yes
• No • Yes • Yes • No
•Remarks
• It’s very hard to implement future integration and consolidation without full control the board of directors