China buys only 40% in India

Overseas copy, India is much stronger than China in the financial crisis, the market capitalisation of many Western companies has shrunk recently, seems to create a good opportunity for Chinese companies to copy bottom abroad. One after another, however, there are few winners. India, by contrast, has outperformed China in overseas mergers and acquisitions. In a report released in January, the Boston consulting firm said China's acquisitions overseas were only 40% of India's. In contrast to the "indigestion" commonly shown by Chinese companies after mergers and acquisitions, the prospects for mergers and acquisitions in Indian companies are mostly good.　　What is the reason for such a huge difference in the performance of these two countries in overseas mergers and acquisitions? Known as the "scavenger" of the Delta group, its "target" is often the other people dismissive of the "garbage enterprise." The key to the acquisition of the company is to first look at the "target" is not the company's resources, and then see the "goal" of the shortcomings can be made up by the company's strengths, and finally measure the cost of doing all this is beyond their acceptable range.　　Although GM tried to sell the Hummer brand to Tata, it was rejected after lessons because the Hummer brand was not only closely linked to high fuel consumption and noise, but also a promotional selling point for the "American patriotic car", which was difficult to digest after acquisitions. By contrast, Chinese companies have done a lot of sloppy work in the early stages. Some enterprises themselves lack the ability of overseas research, also do not pay attention to personnel, funds in this area of investment, or rely on foreign intermediaries, or superstition-skimming "business delegation." A Nordic friend told the author that when Ford was to sell its Volvo brand, a Chinese company quickly expressed interest in acquisitions. While other foreign companies that have acquired the Volvo bid are still demonstrating the viability of the board, the Chinese have sent a visit to the Nordic field.　　Such "rapid" so that friends can not understand, he said, this is not efficient, but it will make people feel too hasty. Tata or Mittal, who always insists on dominance in overseas mergers and acquisitions, is never a "money-without-decision" deal. Mr Mittal even proposed the famous 100%-iron rule ——— a non-percent takeover. In contrast, overseas mergers and acquisitions by Chinese companies seem less fastidious: Lenovo's dominance of the IBM brand is tightly tied to the onerous terms of the contract; The current release of Tengzhong buys only the right to use the trademark.　　Money to Buy is the rights and interests, is the voice, the right to control, if these powers to surrender, mergers and acquisitions became "money to buy the crime by." Where is the gap between China and India? India's corporate governance structure, civil law and commercial law system are quite perfect. India's government in September 2006 developed a long-term strategy to promote overseas investment, the central Bank of India has gradually simplified the Indian company's overseas investment procedures, and greatly relaxed the investment limit, Indian companies can be twice times the value of the company's net worth of overseas investment.　　This allows Indian companies to get strong support from the government, and not because the "mother-in-law" too wide to delay fighter jets. Although Indian enterprises also pay attention to a variety of operations, but each involved in the category has its own strengths and advantages, each merger seems to be around the attack, in fact, around the "big advantage, padded short board" eight words to make a fuss, naturally easy to effect. Some Chinese enterprises, in mergers or acquisitions or too much emphasis on brand name, or simply pick up cheap "copy bottom", neither confidant nor know that, nature can not understand the "marriage" the real value and objectives.　　The Blind Ride the Blind Horse, the probability of success is naturally much smaller. Although India is also a family business, but management (including family members) are mostly in foreign countries with good and targeted education, but also in the family enterprises in the grassroots and mid-level experience, in the merger before, during and after often play a key role.　　Some Chinese enterprises, regardless of family, not family, people often lack of international standards, and market integration of quality, experience and courage, decision-making, management, judgment on the natural error. Some say the challenges and pressures that Chinese companies face in overseas mergers and acquisitions are rooted in the country's many national backgrounds. In fact, all the stakeholders in the world should share the dividend of globalization, Chinese enterprises must first change their own ideas in order to go further. For any emerging economic power, overseas mergers and acquisitions are a hurdle, which requires the relevant departments, enterprises and decision-makers absorbing, at the lowest cost, as soon as possible to pass this hurdle, to receive a qualified "diploma." ▲ (the author is a Chinese scholar in Canada)