A Chinese Technology Company for Sale

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Global Entrepreneurship

Case study

QI-TECH: A Chinese Technology Company for Sale

Name: Choi Ying Kai

SID: 06523393

Date edited: 11-11-2007

Case background:

QI-TECH, a Chinese manufacturer of precision Coordinate Measurement Machines, is a joint venture established by Indiver BV, a Dutch aircraft engine manufacturer and a Chinese state-owned enterprise QQMF. Looking for a strategic exit, Indiver BV, which holds 50% of QI-TECH, must negotiate a sale with its Chinese partner and a potential buyer, Brown & Sharpe. For this purpose Roger Kollbrunner, the Business Development Manager at Indivers BV, has to develop a viable deal structure and negotiation strategy.


What are the objectives of different parties on the
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Whether Indivers would still hold some stakes in Qi-tech for two years' time. If Indivers withdrew immediately, Brown & Sharpe may find it risky and difficult to collaborate with QQMF.

The risks of government intervention before privatization.

Kollbrunner and Li should expect these potential concerns and seek for opinions from Indivers, QQMF and the Chinese government before the negotiation. More importantly, they should have remained open for many rounds of negotiation before reaching the deal so as to clearly address to both parties' concern and reach for feasible win-win solutions.

What should Roger Kollbrunner do next?

After preparing for the valuation and negotiations issues, there are seven steps to close a deal:

Open to listen to each other's concerns.

Support the concerns by vision and evidence.

Seek understanding and possibility from one another.

Indicate the readiness to work together.

Assemble potential trades after addressing to all major parties' concerns.

Reach final agreement.

Follow up to make sure what is agreed happens.

6. What general lessons regarding the management of joint ventures in entrepreneurial settings can you draw from this case?

There are three related lessons I could draw from the case:

First, cultural difference can pose great problems in communication and collaboration in a joint venture. In this case, an attempt to attract a strategic investor had failed primarily because of lack of cultural sensitivity by the U.S.

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