WHICH COUNTRY HAS BECOME THE MOST AGGRESSIVE BUYER OF BUSINESSES?

 

So which country is responsible for aggressive buying of businesses in the first quarter of 2016?

Last Friday, it was announced that Anbang, a Chinese insurance company, offered to buy Starwood Hotels for over $13 billion [ they outbid Marriott]. Marriott have just increased their offer and it will be interesting how this battle plays out.

I fancy the Chinese to win the battle.

With the backing of the Chinese government, the Chinese buyers are able to take a longer term view on value and are less likely to have vocal shareholders banging on their door if they ‘overpay’.

If the deal goes through, it will be the largest acquisition ever of a US company by a Chinese firm.

This year, Chinese companies have spent $103 billion on acquisitions of foreign businesses and there have been 102 Chinese outbound mergers and acquisitions deals according to Dealogic.

They have surpassed in 2 months what they spent all last year!

The following deals are the highlights of US companies being bought:

  1. Ingram Micro for $6 billion
  2. General Electric Appliances for $5 billion
  3. Terex Corp. for $5 billion
  4. Legendary Entertainment Group for $3.5 billion [ they were the film studio behind Jurassic Park, The Dark Knight and other blockbusters].

The industries they are acquiring are diverse.

It’s not only restricted to US companies.

The Chinese are buying in Europe.

Last year they agreed to buy Pirelli, the Italian tyremaker, for $7.7 billion.

This year, they have agreed to buy a German maker of machinery to process rubber and plastic for $1 billion.

So why are they buying abroad?

The main reason for them being so acquisitive is to get the brands, technologies and talent they lack. In addition, they will also be able to capitalize on future waves of growth at home.

What does this mean for you as a small business owner?

Very little!

However there’s a broader point which is important for you to consider.

When you decide to sell your business and maximize your exit, there’s a greater opportunity and more options open to you as we are now living in a truly globalized world.

The opportunity to sell not only locally but regionally, nationally and internationally is far greater.

This requires more work and creativity but there’s a significant chance you will sell your business and sell for the payout you deserve.

Free Video Series Reveals: How To Sell Your Business in Less Than 2 Years for 3 Times to 10 Times More Than You Think You Can ...
Simply enter your details now to instantly receive your Free Video:

Leave a Reply