Andy Rice of The Jordan Company describes their deal activity in China, and what factors are impacting the development of other areas in Asia. In this SourceMedia video sponsored by CT Corporation, you’ll see why the Asian market is soon to be booming.
TRANSCRIPT
Are you still active in China?
We’re actually slowing down a lot in China. We’ve actually done 35 deals in China, acquisitions and joint ventures, and most are add-ons to our US portfolio. What we found is valuations are very, very high. We’ll look at eight to nine times EBITA [earnings before interest, taxes, and amortization] and competitors are bidding 12 to 14 times EBITA or higher. There is still not much debt financing in China, and the economy is starting to slow down a little bit. We’re just not as comfortable as we were investing in China.
Are you interested in other areas of Asia?
We’re looking a lot at Southeast Asia. The ASEAN Agreement just kicked in at the beginning of this year, and that’s going to create a common market of the Southeast Asia countries similar to the EC. For instance, 90% of all tariffs between those countries just kicked in on January 1, which was a huge event and this is going to lead to infrastructure development.
There are 625 million people in Southeast Asia, and 65% of those people are under 35, so the demographics are very positive compared to China, which is slowing. As more and more Fortune 500 companies invest in Southeast Asia to be part of that growing region, small, midsized, middle market companies will follow them to be part of that market as well.
Embed URL
https://www.youtube.com/embed/BkQXLf_yL_Q
Business Role
Accountant
Advisor
Analyst
CEO / COO / VP
CFO
Compliance Officer
Corporate Controller
Corporate Secretary
Entrepreneur
General Counsel
Investment Banker
Investor
Lawyer
Legal Administrator
Owner
Paralegal
Para-Professional
Venture Capitalist
Business Segment
Sole Proprietor
Single Establishment
Traditional Local Player
Tax Optimizer
Regional Operator - 1
Regional Operator - 2
Complex Operators
Resource Optimizer
Dealmaker
Business Size
Small Business
Middle Market
Corporation
International Corporation
Large Law firm
Small Law Firms
Geography International
International
Afghanistan
Albania
Algeria
Andorra
Angola
Antigua and Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahamas, The
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
British Virgin Islands
Brunei
Bulgaria
Burkina Faso
Burma
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China
Colombia
Comoros
Congo, Democratic Republic of the
Congo, Republic of the
Costa Rica
Cote d'Ivoire
Croatia
Cuba
Curacao
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
East Timor (see Timor-Leste)
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia, The
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Holy See
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kiribati
Korea, North
Korea, South
Kosovo
Kuwait
Kyrgyzstan
Laos
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Macau
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico
Micronesia
Moldova
Monaco
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nauru
Nepal
Netherlands
Netherlands Antilles
New Zealand
Nicaragua
Niger
Nigeria
North Korea
Norway
Oman
Pakistan
Palau
Palestinian Territories
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Sint Maarten
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South Korea
South Sudan
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syria
Taiwan
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Arab Emirates
United Kingdom
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe
Geography National
Domestic
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
District of Columbia
Puerto Rico
Industry Type
Agriculture
Accounting
Advertising
Aerospace
Aircraft
Airline
Apparel & Accessories
Automotive
Banking
Broadcasting
Brokerage
Biotechnology
Computer
Consulting
Consumer Products
Cosmetics
Defense
Department Stores
Education
Electronics
Energy
Entertainment & Leisure
Executive Search
Financial Services
Grocery Health Care
Internet Publishing
Investment Banking
Legal
Manufacturing
Motion Picture & Video
Music
Newspaper Publishers
Online Auctions
Pension Funds
Pharmaceuticals
Private Equity
Publishing
Real Estate
Retail & Wholesale
Securities & Commodity Exchanges
Service
Software
Sports
Technology
Telecommunications
Television
Transportation
Trucking
Venture Capital