Implementation Stage

A major consideration with any business resue process is that Time is NOT on your side. The more you wait in re-estblishing course, the more desperate the influx of cash is and with less options. The reasons for the distress hardly ever repair themselves.

The Investigational Stage
A foreign company that owns a distressed China venture may already have some strongly held beliefs about the causes of that distress. While those beliefs can be precise, not surprisingly, they are often wrong or superficial, since they are resulting from the filtered perspective of either a overseas head office, or ex-pat staffers whose familiarity with Chinese culture could be limited.

Therefore, the primary step in effecting a course change is to authenticate through analysis the degree and nature of the venture's distress through fresh eyes.

The typical reasons of distress fall into four broad categories:

Product troubles, price, quality, features, competition, supply (backorders, lead time) demand (a viable market doesn't exist)
marketing and advertising issues, lack of advertising, misdirected promotion (lack of localization) / mistaken positioning for China

Partner issues:
China partner lacks dedication, China partner lacks marketing distribution, or support capabilities.
China partner's techniques are at odds with foreign partner's methods / China partner subverts foreign partner's initiatives
China partner's goals are at odds with overseas partner's targets (apparent or hidden, legitimate or nefarious)
China partner's accounting practices are suspect.

Regulatory issues, barriers to crucial markets / protectionism, seemingly unending and unreasonable demands for permits, licenses, etc

Ipo pang's team is qualified to reveal the true nature of the venture's distress, from the point of view of Sales, marketing and advertising, and Operations management as well as forensic accounting. Arising from this objective investigational process, a clear and unfiltered picture of the venture's status will emerge.

The Analytical (Recommendation) Phase
Casting aside preconceived notions about the nature of a venture's distress, and focusing instead on the objective findings of the Investigational Stage, Trident will promulgate recommendations for the foreign company to consider. Of course, one must be open to the notion that the venture is in fact performing as well as can be expected. In other words, underperformance is not a function of management but rather, it is the expectations and opportunity analysis for China that were too high for the product being offered. In such cases, a foreign partner in a China venture could choose to re-align not only its expectations and guidance to investors, but also, its resource allocation and management approach to the China venture.

The range of recommendations arising from analysis could be broad, including:

No fundamental changes; Change marketing thrust / pricing / product mix, etc.
Resolve disputes with China partner, Terminate China partner / seek new partner,Change ex-pat management
Seek cash infusion, Address regulatory barriers through qualified intermediaries / lobbyists partial or total divestment.

Dissolution and liquidation

The Implementation Phase
Equipped with an objective analysis and recommendations, the foreign investor in a distressed China venture can effectively determine its optimal course. Ipo pang is equipped to implement the chosen course of action(s), some aspects of which could require legal expertise in association with IPO PANG: resolving disputes with current partners, new efforts to manage governmental or regulatory issues, terminating existing partner relationships and identifying, qualifying, and negotiating with new partners, identifying, qualifying, and negotiating with new investors, divesting some or every one of the overseas company's stakemanagement consulting china

china mangement consulting
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IPO PANG P.C.
18 New Jinqiao Rd.
Ramada Tower, Suites 2310 €" 2312
Pudong, Shanghai P.R.C. 201206
Tel. (+86) 21 3382 1918
Email: info@ipopang.com