Evaluating Opportunities for Alliances and Investments

Evaluating Opportunities for Alliances and Investments

Type of Client

Industrial Products Manufacturer

Geography

India and USA

Challenge

The client company, a producer of industrial products used in power generation facilities, utilized contract manufacturers in China and India.  With a strong US business, the client looked to cut costs and generate a more favorable market position in Asia, where the high expense of shipping bulky materials around the world made the company less competitive. The company had an opportunity to further invest in a current supplier in India. EMW was asked to outline potential alternatives for a strategic alliance or direct investment with the Indian supplier.   

Solution

EMW was appointed as an advisor to the CFO to outline alliance and investment options laying out the pros, cons, investment parameters and financial ramification of each scenario. Some of the alternatives included a long term multi-year contract, minority investment or a direct foreign investment – acquisition. 

Result

Within two weeks of the start of the engagement, EMW identified multiple ways for the client to take the next steps in its emerging business strategy. 

Follow-Up Note

EMW works with client to devise the company’s international business strategy, identifies the risks and benefits each strategic move, and executes those strategies to a successful outcome.