Developing Business Case Studies on Cross-Border Mergers and Acquisitions in China

Project Title

Developing Business Case Studies on Cross-Border Mergers and Acquisitions in China

Project Leader

Prof Vidhan K. Goyal

School / Dept

SBM / FINA

Project Duration

Nov 2005 - May 2008

Project Description

Business school teaching becomes heavily case-based. Existing cases available through Harvard Business School Publishing and the European Case Clearing House focus mostly on the US and European firms. Business situations faced by Chinese managers or students working in the Mainland often differ quite significantly from those in Europe or the US. The Asian Case Research Center has started to develop some Asian cases but only a few of them focus on finance. Asian cases on cross-border mergers and acquisition transactions are almost non-existent. The objective of this project is to develop two high quality business cases revolving around recent cross-border mergers and acquisition transactions in China. This will greatly enhance student learning as they will be able to analyse business problems that reflect local context and institutions.

Project Outcome

• We researched and wrote a case study and a teaching note that can be used in corporate finance courses at both the undergraduate and the graduate level. The case describing a recent cross-border acquisition by a Chinese company and focuses on valuation and cross-country acquisition issues. The main objective of project was to contribute to the teaching material that can be used by instructors in Asia and to write a case on a recent Asian cross-border transaction that has local context and that raises issues that are of concern to Asian firms.
• The first case "Lenovo: The Acquisition of IBM's PC Business" was tested in two sections of FINA535 Strategic Finance and Value Creation (with total enrollment of 78 MBA students) in the spring semester 2008. We asked students to complete a group analysis of the case before coming to the class. We then spent a whole class period discussing the case as would be done in a case session. The CELT staff observed the case discussion and complete a survey form to obtain feedback on various aspects of the case and the discussion that took place in class. The comments and views of participants obtained were helpful in revising the case.
• A second case based on the restructuring of a Hong Kong company has been planned. The tentative title of the case is "Chevalier iTech: Restructuring" and it is currently in progress.

Status

Completed

Project Documents
(Only accessible by HKUST users)

• Project Plan
• Progress Report: First | Second | Third | Forth |
• Final Report

Adaptation

Full Project