China

1 D EC EM B ER 2010 c o r p o r a t e f i n a n c e p r a c t i c e Past lessons for mainland chinawares parvenue stick ventures As multinationals revive interest in collaborating with Chinese partners, the lessons of preceding(a) ventures bear remembering. Stephan Bosshart, Thomas Luedi, and Emma Wang 2 Its been ten long time since multinationals first began turning away from joint ventures in China as the preferred way to take part in the worlds hottest growth story. Many joint ventures failed to endure, and as multinationals gained experience in China, and foreign investment restrictions loosened, multinationals found it easier in many sectors to start a business from scratchâ€"or to acquire an existing one in a flashâ€"than to negotiate, establish, and manage a joint venture in the long term. No longer. Chinas hot growth has boosted valuations and increased competition for outright acquisitions of Chinese companies that are often less interested in being acquired. That makes joint ventures a more appealing option, and so does a growing pool of healthier prospective Chinese partners. All this is prompting some multinationals to reconsider the joint-venture approach as an alternate avenue for getting a stake in the continuing strength of Chinas economy.

But eon the dynamics have changed, the fundamentals have not: companies act joint ventures would do well to reflect on the lessons of past deals to improve the chances of success. In China, some of those lessons are especially critical, much(prenominal) as choosing partners that can make tangible business contributions, safeguarding intellectual property, ensuring operational control of the joint venture, and managing talent. Others are critical for joint ventures in all geographies, such as aligning strategic priorities, creating a structure that permits rapid responses to change, and preparing up front for ultimate restructuring. Choosing better partners When China first opened its doors to multinationals, in the 1980s,... If you hope to get a full essay, order it on our website: Ordercustompaper.com

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