HONG KONG, April 24 /Xinhua-PRNewswire/ -- According to the latest findings of the Grant Thornton International Business Report (IBR) 2008, mainland China has the highest number of privately held businesses expecting to grow through acquisition (67%) or IPO (60%) in the next three years, far above the global average. (Table 1 & 2) The results indicate that despite the current turbulence in the world financial markets, privately held businesses in mainland China are growing rapidly and seeking fund externally.
Desmond Yuen, Managing Partner of China Practice at Grant Thornton said, "Businesses in mainland China are becoming increasingly sophisticated, international and acquisitive in their outlook. They are focused on building value rather than looking to realise it at this stage and are excited about following their own growth strategies through domestic acquisition and IPO. It is no doubt that Chinese M&A activity is being fuelled by finance available from the equity markets."
On the other hand, 29% of Hong Kong privately held businesses are planning to grow through acquisition in the next three years. 69% of those businesses anticipate a cross-border deal. This result places Hong Kong the first among all the 34 economies surveyed globally. Furthermore, 43% of those Hong Kong businesses are expecting to grow through domestic acquisition. (Table 3)
Alison Wong, Partner at Grant Thornton said, "Whilst privately held businesses may not be conducting headline grabbing deals that catch the public’s interest, they are increasingly becoming more confident and successful in transacting internationally. To further expand their market share, Hong Kong businesses expand their businesses through both domestic and cross-border acquisition in order to demonstrate their international capability in the market. Obviously they see international M&A as a key strategic tool to drive growth and further success in their business."
The survey also reveals that business owners in the fast growing BRIC (Brazil, Russia, India and mainland China) economies are now enthusiastically embracing M&A, and indeed are often keener to make acquisitions than businesses from more mature markets. Overall, 59% of businesses surveyed in the BRIC economies said they anticipated an acquisition in the next three years. 47% of surveyed BRIC businesses expected to undergo public listing in the next three years.
"Compare to respondents in the more mature markets such as the US and the UK, a greater proportion of businesses in the BRIC economies are expecting to undertake a public listing in the near future. The findings support the IBR business optimism survey we have conducted previously, which identified business owners from the emerging economies as the most optimistic in the world," Desmond Yuen concluded.
For tables of the Grant Thornton International Business Report (IBR) 2008, please refer to: http://xprnnews.xfn.info/GrantThornton/20080424/HK088016E.pdf
About International Business Report
Entering its sixth year, Grant Thornton’s International Business Report (IBR) 2008 was carried out among 7,800 owners of medium sized privately held businesses from 34 countries/regions in late 2007. Grant Thornton International started a major annual survey of the attitudes and expectations of small and medium-sized businesses in 1992 called the European Business Survey (EBS). In 2003 the research project was widened to an international perspective covering medium-sized businesses and renamed the International Business Owners Survey (IBOS).
In 2007, the survey’s name was changed from IBOS to the International Business Report (IBR). The IBR survey draws upon 16 years of trend data for original EBS participants and 6 years for original IBOS countries. The 16 year trend data is available for: France, Germany, Greece, Ireland, Italy, Netherlands, Spain, Sweden and the United Kingdom, while the 6 year trend data is available for Australia, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa and the United States.
Grant Thornton International will donate US$5 to UNICEF for every completed IBR questionnaire. In 2008, this will result in a donation of over US$39,000.
The research was conducted by Experian Business Strategies Limited. To find out more about IBR and to obtain details of IBR reports and results please visit http://www.internationalbusinessreport.com .
About Grant Thornton
Grant Thornton is a member firm within Grant Thornton International Ltd (‘Grant Thornton International’). Grant Thornton International is one of the world’s leading organisations of independently owned and managed accounting and consulting firms. These firms provide assurance, tax and specialist advisory services to privately held businesses and public interest entities. In Hong Kong and mainland China, Grant Thornton has offices in Hong Kong, Beijing, Shanghai, Guangzhou and Shenzhen, employing in excess of 1,000 people. Clients can access the knowledge and experience of more than 2,400 partners in over 100 countries in the Grant Thornton International network and receive the same distinctive, high quality and personalised service wherever they choose to do business.
Grant Thornton is a member firm within Grant Thornton International Ltd. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered by the member firms independently.
(C) 2008 Grant Thornton. All rights reserved.
Further enquiries, please contact:
Desmond Yuen, Managing Partner of China Practice
Tel: +852-2218-3113
Email: desmond.yuen@gthk.com.hk
Alison Wong, Partner
Tel: +852-2218-3037
Email: alison.wong@gthk.com.hk
Martin Cheung, Director of Corporate Finance
Tel: +852-2218-3394
Email: martin.cheung@gthk.com.hk
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