South Beauty is a famous fast food chain brand in China, which has a high popularity and market position. In 20 15, CVCCapitalPartners, an international private equity investment company, acquired 80% of the shares of South Beauty and became the largest shareholder of the company. This merger and acquisition process has its special background and process.
1. M&A rumors triggered by the collapse of the head of South Beauty.
In 20 14, Zhang Lan, the head of South Beauty brand, decided to close a large number of branches, which triggered doubts and concerns about the brand's rapid expansion strategy. At this time, the tide of closing stores also further reduced the operating conditions of South Beauty.
It is reported that CVCCapitalPartners won the M&A opportunity in South Beauty through the recommendation of David, its financial executive director in China. CVCCapitalPartners began to investigate and study South Beauty, hoping to improve the commercial benefits of South Beauty through mergers and acquisitions.
2.CVCCapitalPartners started M&A negotiations with South Beauty.
During the investigation of South Beauty, CVCCapitalPartners started merger and acquisition negotiations with South Beauty. The two sides sent teams to conduct business negotiations, and conducted in-depth discussions on important issues such as company valuation, shareholding structure and management distribution.
After several rounds of negotiations and consultations, CVCCapitalPartners finally acquired 80% of the shares of South Beauty for 7 billion yuan. In addition, CVCCapitalPartners also provided a loan of 70 million yuan to South Beauty to help it alleviate the financial pressure.
3.CVCCapitalPartners adjusts the business strategy of South Beauty
After the acquisition of South Beauty, CVCCapitalPartners immediately carried out business integration and adjusted the business strategy of South Beauty. By improving the operating system and marketing activities of South Beauty, CVCCapitalPartners has significantly improved the operating conditions of South Beauty.
According to relevant sources of CVCCapitalPartners, it has conducted comprehensive market research and brand analysis on South Beauty, and upgraded and optimized its products and services. CVCCapitalPartners also strengthened the quality control and quality management of South Beauty, and improved the brand's influence and reputation.
4. South Beauty realized securitization with the help of CVCCapitalPartners.
20 16, CVCCapitalPartners helped South Beauty complete the securitization. Through issuing bonds and listing, South Beauty has gained more capital support and greater development space in the future.
With the help of CVCCapitalPartners, South Beauty became the first medium-sized catering enterprise listed in China. This not only improves the brand image and market position of South Beauty, but also brings more development opportunities for South Beauty.
5.CVCCapitalPartners regards the acquisition of South Beauty as a strategic investment in China.
The acquisition of South Beauty by CVCCapitalPartners is regarded as an important measure for CVCCapitalPartners to invest heavily in China market. It is reported that CVCCapitalPartners has always regarded China as an important part of its global expansion strategy, hoping to get better business returns through massive investment.
After the acquisition of South Beauty, CVCCapitalPartners continued to expand in China market. The company has invested in many enterprises in China, including Baby Friendly Room and Belle International, and its operation in the China market has shown a good momentum.
6. Concluding remarks
Through the acquisition and investment of CVCCapitalPartners, South Beauty has achieved marketing and brand optimization to a great extent. In addition, CVCCapitalPartners also invested heavily in China market and achieved certain success.
The acquisition of South Beauty is an important measure of CVCCapitalPartners in China market, and it has also established a keen eye and a good reputation for CVCCapitalPartners in China. In the future, CVCCapitalPartners will continue to expand its investment in the China market, and realize cooperation, innovation and win-win with more China enterprises.