global market practice m 2012may 2012

M&AM&A

Global Market Practice

M 2012May 2012

Contents

1 KPMG

2 M&A

3 M&A

4 China Practice Team

© 2012 Sumjong KPMG Inc. the Korean member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Korea.

1

KPMG

KPMG International Korea Member Firm KPMG , , .

KPMG

– (Corporate Finance)– (Corporate Restructuring) ––

Seoul

–

: 1991 6 1

2010 (2010.4.~2011.3.) : 3,386

2011 3 31 1 686 2011 3 31 : 1,686

2012 2 1 : 2,486


2

KPMG Corporate Finance, M&A

2011 No. of deals

1 KPMG 360

2011 KPMG 360 mid-market (<USD 1bn) Deal , 5 1.

2010 No. of deals

1 KPMG 321

2. PwC 253

3. Deloitte 241

3 M St l 2362009 No of deals

2. PricewaterhouseCoopers 270

3. Goldman Sachs & Co 238

3. Morgan Stanley 234

5. Ernst & Young LLP 226

5. Rothschild 205

7. JP Morgan 195

8 UBS 1943. Morgan Stanley 236


5. Lazard 224

7. Rothschild 213

8. JP Morgan 197

9. Credit Suisse 189

10A

2008 No. of deals

1. KPMG 483

2 PwC 387

2009 No. of deals

1. KPMG 287

2. PwC 255

3 Rothschild 196

4 JP Morgan 191

5 Goldman Sachs & Co 175

8. UBS 194

9. Credit Suisse 189

10.

Bank of America Merrill Lynch

179

10.

IMAP 180

2007 No. of deals

1. KPMG 507

2. PwC 384

3. JP Morgan 322

4 Citi 319

2. PwC 387

3. UBS 293

4. JP Morgan 285

5. Rothschild 282

6. Deloitte 272

7.Bank of America Merrill Lynch

264

6 Credit Suisse 174

7 Morgan Stanley 171

8 Lazard 170

9 Deutsche Bank AG 167

10 UBS 165

4. Citi 319

4 UBS 319

6 Deloitte 308

7 Rothschild 307

8 Morgan Stanley 277

8 E&Y LLP 277

10 Goldman Sachs & Co 274

8. Citi 253


10. Morgan Stanley 247


3

Source: Thomson Reuters SDC


KPMG M&A Advisory League Table

Mergermarket League Table (2011, Completed) Thebell M&A advisor league table

KPMG M&A Advisory .

2012 – 1st Quarter Value (KRW m)

1. KPMG 8,230,396

2. Ernest & Young 3,619,008

Rank

2010 2011 House Value (US$ m)Deal

CountCount Change

4 1 Woori Investment & Securities 10,999 14 4

6 2 KPMG 859 13 5

l

(2012 1st Quarter, Completed)

3. PwC 1,390,245

4. Deloitte 435,126

5. BDO ( ) 536,526

6Howarth

5 800

3 3 Deloitte 350 12 -

12 4 Korea Development Bank 11,145 10 5

1 5 Ernst & Young 2,286 8 -12

2 6 PwC 202 8 -12

7 7 Samsung Securities 7,227 6 -26.

Choongjung5,800

54 8 Daewoo Securities 2,452 6 5

5 9 Morgan Stanley 6,066 5 -3

- 10 Credit Suisse 5,240 5 -1

- 11 Kudos 82 5 -1

15 12 Bank of America Merrill Lynch 9 030 4 115 12 Bank of America Merrill Lynch 9,030 4 1

9 13 Macquarie Group 3,306 4 -2

- 14 Deutsche Bank 1,830 4 -

19 15 UBS Investment Bank 1,023 4 1


4

Contents

1 KPMG

2 M&A

3 M&A



5

M&A

M&A Deal 2009 2010 . M&A (“SI”) M&A , PE/VC ( “FI”) .

M&A

4,679 4 923

5,157

6,000

160

180

(SI)

89% 90% 89% 87%60%

80%

100%

M&ASI M&A Deal

154

103

147

132 4,149

4,923

3 000

4,000

5,000

100

120

140

160

Deio

n

0%

20%

40%

2008 2009 2010 2011SI SI

22 22 26 33

1,000

2,000

3,000

20

40

60

80

eals

USD

Bill

(FI)

60%

80%

100%

FIFI M&A Deal

--

20

2008 2009 2010 2011

93% 93% 91% 95%

0%

20%

40%

60%

2008 2009 2010 2011

FI M&A Deal


6

Source: Thomson Reuters, ChinaVenture

M&A _

Case 1: EverGrande Group, Shenzhen Construction Group M&A Deal

, , M&A 61% .

17%

6%

4%

Health Care4% 2011 1 , Evergrande Real Estate

Group Shenzhen Construction Group 71% (Shenzhen Construction 71%)

17%9%

7%

6%

Target: ShenZhen Construction

: Evergrande Real Estate Group

: 2.52 USD

14%13%

High-tech9% Case 1: Ping An Bank , SDB , A M&A Deal

Ping An Bank SDB Ping An Source: Thomson Reuters, ChinaVenture

4 :

•.

RMB 1 27 , 395 Sales Network, Ping An 80%

Target: SDB : Ping An Bank


7

• : 221 RMB

M&A _

2011 M&A

FI .

Case 1: Haier, - (Carlyle)

29%4%3%

Health Care3%

3% Haier 1.37 5,700

400

Haier 3, 429%

7%

High-tech5%

4%

: Haier :

: 1.37 USD + á

24%11%

11%

S Th R t Chi V t

Case 2： Hony Future Investment( ), QFLP

PESource: Thomson Reuters, ChinaVenture

PE, VC FI :

•

•

QFLP( ), , Blackstone, DT Capital,

3i QFLP


8

• IPO Exit: :

: 5 USD

M&A _ M&A

M&A 2009 2010 , .

M&A ( ) KPMG M&A Deal ( )

17

1414

16

18

1,200

1,400

M&A ( )

(USD )

2012-03-08 LuckyPai Co Ltd 6.3

KPMG M&A Deal ( )

736

1,243

949

12

7 8

10

12

14

600

800

1,000

Deals

USD

Mill

ion

2011-12-01Doosan China Financial Leasing Corp

60.26

2011-08-17 LuckyPai Co Ltd N/A

2011 07 19 C t i A t 22 89

262 2

4

6

200

400

600U 2011-07-19 Certain Assets 22.89

2011-07-19 Certain Assets 22.89

2010-07-30 LuckyPai Co Ltd 130

0-2009 2010 2011 2012

Deal Amount No. of Deals

2009-10-20 Times Ltd 642.72

2009-07-17 11.27

S Bl b KPMG A l i


9

Source: Bloomberg, KPMG AnalysisNote: 2009-2012.05 M&A Deal

Source: Bloomberg, KPMG Analysis

M&A

O B d M&A ( )

“走出去” , , .

2011 M&AOut-Bound M&A – ( )

207

250

45

50

27%Hightech5%

Health Care3% 1% 2% 3%

2011 M&A

126 144

188 0

150

200

25

30

35

40

DeaD

Bill

ion

19%

16%

15%

Hightech9%

9

30

38 43

50

100

5

10

15

20

als

USD

2011 M&A

--2008 2009 2010 2011

Out-Bound28%

21%

16%

2% 5%1%


10

Source: Thomson Reuters, ChinaVenture Source: Thomson Reuters, ChinaVenture

27%21%

M&A _ M&A

M&A Deal .

Target M&A Deal ( )M&A ( )

1,978

8

11

6

8

10

12

1,500

2,000

2,500

Deals

lion

(USD )

2009-09-28 1289.18

102

1,320

1.42

52

0

2

4

6

-

500

1,000

2009 2010 2011 2012

USD

Mill 2009-03-19 202.09

2011-12-30SK Networks PS Shantou Co Ltd

Xinghui Auto ModelCo Ltd

34.29

Source: Bloomberg, KPMG Analysis

M&A ( )

4%

2009 2010 2011 2012Deal Amount No. of Deals

(USD )

Target M&A Deal( )

38%SPC6%

14%2010-09-11 Hyosung D&P Co Ltd

JINGRI Industrial DiamondCompany Limited

22.6

2011-06-28Daewoo MotorSales Corporation

JL Construction Co.Limited

27.81


11

Source: Mergermarket, KPMG Analysis

,3%35%

Note: 2009-2012.05 M&A Deal

Contents

1 KPMG

2 M&A

3 M&A



12

M&A Key Factor

M&A ….

? : (34%, 51%, 67%) / / / &

Deal Structure

? Valuation / Pricing

Synergy / / / financingSynergy / / / financing

Representations & Warranty( ) Tax?

Representations & Warranty( ), , Tax ,

( , escrow, earn-out)


13

M&A Key Success Factor

M&A Key Success Factor M&A M&A .

Needs Solution Deal Success

, Communication /win-win

Deal Management & Closing

Deal , Tax, Legal , Seller Communication Channel

D l Cl i D l

Communication Deal Coordination

Deal Closing Deal Closing , Deal

Deal Structuring Deal Post M&A Management Critical Factor

, Risk Cash Outflow

Structure Regulation Tax Issue Structure Target Financial Effect

O ti l D l St tCash –Outflow Optimal Deal Structure

Financial Due Diligence

Commercial DD

Legal DD

l

FDD, TDD, CDD, LDD

Valuation

DD Risk Valuation , ,

Post M&A Strategy Deal Structure Valuation

M&A Market Multiple Valuation Transaction Multiple

Negotiation DealNegotiation Factor

Negotiation

Negotiation Process Back-up

Funding FI Funding , FI Funding Structure, Exit Structure Funding

© 2012 Sumjong KPMG Inc. the Korean member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Korea.14

Deal Factor FI

(旧准则 , (企业会计制度

（旧会计准则）

(企业会计准则 / 新准则(企业会计准则 / 新准则

2006 216 38 (新会计准则

: , ` ` ,

16

: , , (中央级国有企业 (大中型企

业）

/ 2007 , `

38

(2007. 1. 1. ) 1992

2001


. .

M&A

-

- , 100%

FlowFinancial

D Dili

Financial

D Dili

- , 100%

-

,

Effect

Due DiligenceDue Diligence-

- , .

-

-

-


M&A

List , ,

, , ValuationValuation

, , Capex,

.


17

Contents

1 KPMG GMP

2 M&A

3



18

M&A China Practice

China Practice M&A .

Deal Structure


19

KPMG China Practice

• China Practice : 2002 4.

• ,,.

• China Practice M&A.

One-Stop

Service

• KPMG , KPMG Advisory Inc..

• KPMG M&A / / One-Stop Service .

• ,,KPMG China Practice .

• China Practice M&A.

M&A

Know-how

• KPMG Global M&A middle market 1~2 .

• KPMG China, , , Network

.


20

KPMG China Practice Team

Project D-Gas Project JJ Project SProject D Gas j JJ

JVJV

j

Valuation

2011 12 2011 6 2011 9

Project SKYProject LT Project G

2011 62011 9 2011 1


21


Project SN Project LTS Project Kj

,

j j

2011 6 2010 122010 11

Project DS Project S Project Baotou

,

2010 102010 6

JV , Valuation

2010 1


22


Project LT Project SN Project Mj j j

Target Company , Valuation

2009 2009 2009

Project Zhongyu Project Tongbao Project A

2008 2008

2

2009


23


Project M Project PMO Project CT IIIj j j

2007 2007 2007

Project ACT Project YU Project S

financial due diligence

2007

Due diligence

2007 2007


24

谢谢！

© 2012 Samjong KPMG Inc. the Korean member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Korea.

The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). KPMG China Practice Team

/

TEL 02 2112 0127TEL : 02-2112-0127

Cell : 010-2109-0541

Email : [email protected]

global market practice m 2012may 2012

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