Industry – Sea port

Territory – China

Client – International shipping company.

Case – The client was in advanced stages of negotiations with private and governmental Chinese entities for the construction and operation of a new port in China. A Financial due diligence was conducted by an international accounting firm. The client rendered the services of A. Yakim in order to examine the due diligence results and lead the negotiations with the Chinese party, in light of risk factors related to the territory. 

Actions – Intensive field-work and analysis of data that our experts gathered independently, yielded findings that raised doubts in the due diligence results in relation to the financial feasibility of the proposed investment and the accuracy of the valuation. Furthermore we revealed risk factors related to FCPA issues.

Outcome – Based on these findings, we suggested to the client to adjust the deal structure and valuation. The Client accepted our approach and instructed us to negotiate on his behalf with the Chinese parties upon new investment terms. The Chinese parties did not accept the new investment terms and based on our recommendation the client decided to terminate negotiations and call off the deal.