Exit Strategy: Sell to the Chinese?
So you’ve worked really hard for the last 20 years and have created a company that the Chinese are after. Should you sell it to them? This question is tougher than it sounds. Imagine selling your company to another organization right here in the USA! Now add complexities to this scenario that are 200 times more complex. Saab and Hawtai Motor Group are the perfect example!
After spending a lot of time and money in agreeing to a joint partnership where Hawtai would own 29% of Saab, the Chinese government “forced to terminate the agreement” according to Saab. The time and money that were spent on language services such as document translations and interpretations should not be underestimated.
A company that has more than 500 employees and is involved in manufacturing autos will have lot of documents and content that have to be translated before an agreement to joint partnership can ever be reached.
If you’re thinking about an Exit Strategy for your company, don’t bet on a Chinese acquisition unless you have done the following:
- Carefully understood and agreed in writing how your products are going to be affected
- Have a clear agreement on certain matters of business operations
- Have the necessary legal agreements in place
- Have understood the financial ramifications of the deal
- Have the backing of the relevant government agencies
In all these situations, you will need localization/translation services and possibly interpretation services as well. Having your own language services provider that understands you and your company philosophy/culture will go long ways in making sure your interests are protected. Spending a few thousand dollars on localizing content is a very smart investment when you see what’s at stake, your entire company and its future!