Business model
Through a large network of influential individuals, such as company directors and government officials, and industry organisations Euro China Capital daily scans potential investment opportunities. Euro China Capital has developed a first selection process focusing on corporate governance, the order of bookkeeping and legal document and meetings with management.
The few companies that filters through this process will go though formal legal and financial DD by certified experts.
If the DD outcome is encouraging, Euro China Capital continues to work with the company to improve value, raise funds through a private placement (if needed) and preparing for an IPO. This work includes, but is not limited to:
- One of Euro China Capitals senior partners will develop an improved business plan together with the company. Euro China Capital typically drives this process and works on site and hands on with the task. Typically, there is an attractive consolidation case that could be executed if Euro China Capital successfully helps the company with funding and/or creating a currency by a listed stock.
- Through partners, Euro China Capital helps in educating management in corporate governance, accounting systems and reporting functions to comply with western standards ahead of a private placement or IPO.
- Through its network of senior western managers, Euro China Capital appoints suitable board members to the Chinese company. Appointed board members are typically highly incentivised in stock and/or stock options to ensure a solid commitment.
- Euro China Capital helps develop an IR function, including a web site, to further increase transparency and improve value in the Chinese company.
- As an IPO approaches, Euro China Capital uses its expertise to analyse the most suitable stock exchange and to find and negotiate with the most appropriate investment bank to capture maximum value for the company’s shareholders.
- Euro China Capital typically aims to have a long-term commitment in the companies though stock ownership and board representation long after an IPO.
