(Xinhua News Agency)
Updated: 2010-11-22 14:26
CHICAGO, IL USA – A US business expert said on Saturday that Chinese companies interested in investing in overseas markets should pay more attention to rigorous due diligence and peer review which are key factors for private investment to succeed.
Richard Wottrich is Senior Managing Director in charge of international desk at The McLean Group, an investment bank providing mergers and acquisitions, capital formation, market intelligence, business valuation, litigation support and exit planning services to middle market businesses.
During recent years, Chinese private funds are growing and looking into overseas market including the United States. When asked about his advice to Chinese private investors, Wottrich told Xinhua News Agency in an exclusive interview: “Professional due diligence and access to all relevant information are the life blood of any investment. Chinese investment groups should cultivate relationships with top professional firms in those countries they seek to invest in and bring on their staffs highly knowledgeable and skilled venture capitalists that know the targeted sectors.”
Wottrich further explained: “In a free capitalistic economy, capital may move where it wishes and the private equity industry is on balance an efficient distribution agent for investment. On balance private equity investments overseas are not materially different from domestic investment, given the same rigorous level of due diligence and peer review.”