Withdrawl From Overseas Business

Factory Closure in China / Liquidation through M&A

Result

  • Introduced a smooth business suspension and restructuring by utilizing a Chinese lawyer
  • Transferred the suspended business to a third party
  • Transferred the loss making company at fair value and retrieved the original investment funds

Company TypeZ

  • Type of Business: Electronics・Material Trading Company
  • Business Scale: JPY 1,000M~ , Profitable Company
  • Business Area: Kanto Region, Overseas
  • Number of Employees: N/A

Status of Business

  • Company Z's main business is an electronics・material trading company. The company focused on the cheap Chinese labour force and established an electronics related factory. Company Z business expansion in China was supported by the growth of the computer and cellphone market.
  • In recent years, the chinese subsidiary faced fierce price competition of their Chinese competitors resulting in a continuous deficit.
  • Company Z forecasted that the Chinese factory had no chance of recovery and decided to retreat from the Chinese market.

Managerial Challenges

  • Lack of knowledge on business withdrawal
  • Did not have access to a local lawyer and was unable to pursue specific procedures associated with the withdrawal
  • Was unable to organize a facilitator to organize and execute the withdrawal project

Contents of Support
(Market Research, General Consultation)

  • Confirming Company Z's demands and consulting the status of the local factory
  • Utilized and signed an attorney contract with a Chinese lawyer (Company Z)
  • Optius performed project management (Organized the scheme, managed the schedule and gathered information etc.)
  • Implemented smooth personnel cuts and business suspension by partnering with a Chinese lawyer

Optius's Plus One!Supported both a business withdrawal and an equity transfer of the overseas subsidiary

  • Organized an equity transfer candidate by co-working with a Chinese lawyer. Supported the equity transfer by gathering local information of candidates and real-estate.
  • Through negotiations with multiple companies, the company was transferred to a Hong Kong based entity. The M&A was completed after the agreement of the equity transfer contract, payment of equity transfer and registration of the company.

MENU