Communications are vital during risky periods.
When investing abroad, Chinese PE companies need to maximise their ROI and they also need to reassure their own investors, as well as the public opinion, regulators and governments of the countries of their investments. This requires powerful and effective communications to all such stakeholders and a strategy to manage their reputation and that of their investment during the often turbulent investment period when the risks are particularly high.
The transaction may depend on communication.
When investing at home, PE companies need to think of the impact of poor communication by themselves or their target investee companies on the success of the transaction. Another situation when strategic communication is essential occurs when the PE company is guiding an existing Chinese investment through a foreign transaction, such as takeover or a merger. Then, the brand value and the quality of the communication of the existing Chinese investment becomes essential to the success of the transaction.
Hidden issues may damage investment.
Chinese PE companies themselves, whether private or state-owned will need help in assessing the impact of their own reputation and intrinsic brand value on the price of the assets they are buying. Poor communication or unexplained issues may cast a shadow on the reputation of the Chinese PE company and raise the value of its investments thereby reducing ROI.
We work closely with two of the largest Chinese PE funds in the world on an advisory capacity.