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INVESTMENT BANKING ADVISORY
China's First Foreign Invested Live Entertainment Company
A leading U.S. entertainment company wished to enter the live entertainment business in China just as the sector opened to foreign investment and needed to raise start-up money to launch their endeavor.
Although our client was a dominant force in its home market, it faced local Chinese regulations and practices that were substantially different. Moreover, no international company had yet been allowed to enter this segment of China's cultural market on its own. To overcome this challenge, our client sought a joint venture with a local company.
We educated our client about local market practices and introduced company executives to critical stakeholders, including public and private sector market participants and key regulators and government entities.
We investigated existing local market participants and identified a private enterprise with significant related experience. We then assisted in negotiating a joint venture agreement with a common purpose as its foundation.
We helped our client position its story, define its market access and expansion strategy, and analyze the local market's historical performance. We then approached investors experienced in the cultural sector and explained to them the company's concept and strategy.
We assisted our client in obtaining government approvals and provided ongoing advice regarding government regulations. We also assisted in the negotiation of contracts with state-owned enterprises, including theatre owner/operators and municipal officials.
We introduced our client to regulatory decision-makers in their sector as well as to key circles of influence and forged close relationships between our client and the decision-makers.
Once initial funding and the joint venture agreements were fully executed, we served as advisors to the international partner and helped the two partners iron out difficulties that arose in working together. We also helped negotiate contracts with local service providers and supplied ongoing strategic advice concerning the venture. Moreover, Sierra Asia senior managers continued to leverage our relationships with local officials to ensure the inaugural project was well-received in the marketplace.