M&A advisory:

Company A: financial advisor on share transfer and joint venture set-up

  Company A, based in Shanghai with a nationwide service network, provides marketing promotion and events services to large top tier multi-national companies. To further develop its business, Company A selected SFC as the exclusive financial advisor on share transfer and joint venture set-up.

  Making in-depth analysis of industry trend, corporate strategy as well as acquisition style of potential investors, SFC chose appropriate valuation model and represented the client to negotiate with foreign investors on the pricing of the shares and the deal structure. In just a few months, SFC helped the two parties reach an agreement on major deal terms and achieve the win-win situation, which manifested the value of SFC to the client.

Restructuring of State-owned Company:

Company B: financial advisory on selling of state-owned shares and restructuring

  Company B is a subsidiary of a famous state-owned holding company. Company B’s core businesses are architecture design, general contracting of constructions and construction supervision. The Company holds local professional qualifications, such as Class A Certificate of Design for Architectural and Electronic Engineering as well as Class A Certificate for Engineering Contractor, which is awarded by Ministry of Construction of China. Due to the fierce competition in the market and declining profit margin, the shareholder decided to sell the shares in the company to potential buyers.

  SFC helped the shareholder work out the deal structure and restructuring process, participated in assets appraisal, union conference, public bidding, and successfully sold shares to a private-owned company, giving the client a satisfactory solution and a reasonable price.

Disposal of State-owned Assets:

Company C: financial advisory on selling of shares in a joint venture

  Company C is a big state-owned group company and has established a joint venture manufacturing electronic components together with a foreign investor. Through a lot of affiliated transactions, the foreign party managed to shift the operating profits overseas. As the minority shareholder of the joint venture, Company C had only 8.5% investment return over the past 9 years. The client decided to sell its shares in the joint venture and selected SFC as its exclusive financial advisor.

  Based on the understanding of the joint venture and transfer pricing issues, SFC selected EV/EBITDA valuation model to maximize the share value of the client, involved third-party auditor, and successfully sold the shares to the foreign shareholder. Finally, Company C sold the shares with high price premium and the IRR of the investment resulted in as high as 14.5%. From the perspective of the client, this deal created a new approach of assets disposal and marked a milestone in the clients’ corporate history.