Thus, East West and Western client reviewed 3 scenarios outlined by the company:

• Establishing their own manufacturing and distribution plant in China
• Subcontracting their China production to a Chinese vendor
• Acquiring a Chinese company which had strong sales & marketing and manufacturing capabilities. The target would need to be able to manufacture the Western company's brand in addition to maintaining their sales and marketing capabilities.

Based on East West's Competitive Intelligence Investigations of several Chinese targets, the Western manufacturer decided to pursue an acquisition strategy in China and used the Investigations to identify the Chinese target which they wanted to acquire.

Challenge:
East West performed an in-depth Operational & Manufacturing Due Diligence on the Chinese acquisition target.

Solution:
East West's Due Diligence included:

1. Management and organization of The Chinese acquisition target
1. Profile of key executive managers at their 2 manufacturing plant and major sales offices
2. Workforce Profile, Senior Management Departures
2. Description of Business Operation and Conditions
1. Competitor Information
2. R&D Capabilities
3. Corporate Strategic Plans
4. Marketing Capabilities
5. Sales and Distribution
6. China governmental relationships
3. Business Relationships (with customers, vendors, employees)
4. Manufacturing Weaknesses of the Chinese acquisition target
5. Organizational Structure
6. Challenges of Integration into the US company
7. Recommended Acquisition Strategy for Chinese firm
8. Negotiated acquisition
9. Drove the Integration Process