Dr. Lee Interviews Peng on Corporate Mergers and Acquisitions - Highlights from FOFA's October 8 Webinar
- FOFA
- Oct 12, 2024
- 2 min read
On October 8th, the online webinar titled "Corporate Mergers: New Trends and Digital Valuation Platforms" featured distinguished speakers including the founder of the "AI Merger" platform, along with Peng Qinwen, a partner at BDO's M&A division in China, which is among the top five global accounting firms. For more details on the event, please follow this link.: https://www.fofahk.com/en/event-details/fofa-mei-zhou-xian-shang-yan-tao-hui-8-oct
Members of the association can access the "Members Only" section to revisit the highlights from each weekly webinar. Joining the association unlocks these exclusive contents: https://www.fofahk.com/en/membersarea
Dr. Lee's Questions and Insights:
Q: What are the primary drivers of corporate mergers and acquisitions today?
A: Peng highlighted that digital transformation and the recent stock market recovery are key drivers. The shift of Chinese capital from growth to stock, similar to Japan post-economic peak, is noteworthy. Other factors include Chinese firms' demand for overseas acquisitions, succession issues, and generational transitions.
Q: How are digital valuation platforms changing traditional assessment methods?
A: Digital platforms enhance efficiency and accuracy in valuations. Most Chinese buyers are publicly listed companies, requiring expertise in due diligence, valuation, and negotiations. Dr. Lee added examples of successful cases utilizing digital tools for due diligence and management, underscoring their significance in mergers and acquisitions.
Q: What challenges exist in facilitating corporate mergers?
A: Challenges include incomplete data and a shortage of skilled professionals. Many Chinese buyers being IPO companies presents unique challenges for acquisitions.
Q: What is the forecast for the M&A market in the coming years?
A: Advances in technology and trading platforms are expected to automate repetitive tasks through big data, allowing professionals to handle specialized issues. With a market worth trillions, China's market size greatly surpasses Japan’s. Recently, collaboration with a new Australian M&A team has enhanced professional capabilities and resources.
Q: How do new technologies impact the M&A process and valuation methods?
A: AI and blockchain are making the M&A process more transparent and valuations more precise, democratizing participation and breaking industry monopolies.
Q: How should parties collaborate to ensure success?
A: Eliminating unsuitable intermediaries and directly addressing information asymmetry allows buyers and sellers to connect swiftly.
Q: What resources and support can FOFA members access?
A: FOFA members receive support from practical teams in Hong Kong and overseas, aiding in successful corporate mergers and acquisitions.
These discussions underscore the value FOFA provides to its members and how leveraging these resources can drive successful mergers and acquisitions.
Commentaires