This summary approaches the GEP “Partnering Program” from the Western and Chinese perspectives; thus, “two sides of the same coin”. Heads or tails…winners both sides.
GEP has created a partnering program for Western and Chinese businesses that works effectively by increasing—sometimes even salvaging—the value of U.S. public corporations.
GEP locates U.S. publicly trading companies that often need to bolster profits, expand markets, and increase shareholders’ value. Simultaneously, the GEP China team sources and screens qualified, private Chinese companies. These Chinese candidates must meet stringent requirements and undergo a vigorous due diligence process. For every 20 nominated Chinese companies (that is, those that pass the first stages of investigation by our business, auditing and legal experts), only one partner company may be selected. These partners usually have revenues of $20-50 million in revenues, with 10-20% going to the bottom line, and holding net assets of $5 million or more. The Chinese companies are motivated with the prospect of obtaining Western capital that enables them to expand in market share and profitability.
The U.S. shareholder is most commonly the big gainer. Through a reverse merger (the Chinese private company merging into the U.S. public company), the newly merged company usually increases in value by many millions of dollars, and the U.S. investment community is reinvigorated by the inclusion of a dynamic Chinese enterprise. Thus, the U.S. companies are motivated with the prospect of obtaining a strong and profitable enterprise, as its minority ownership in the newly merged company far outweighs its previous majority position.
GEP has created a partnering program for Chinese and Western businesses that works effectively by obtaining Western capital that enables the Chinese companies to expand, reach larger markets, make capital improvement, create liquidity and increase profitability.
From our Beijing headquarters, GEP sources and screens qualified, private Chinese companies. Simultaneously, the Western team locates U.S. publicly trading companies that often need to bolster profits, expand markets, and increase shareholders’ value. These U.S. candidates must meet stringent requirements and undergo a vigorous due diligence process. The costs of obtaining the U.S. “shell”, the SEC audit and legal work is solely the responsibility of GEP; the Chinese side incurs no cost to complete this transformation. The U.S. partner must be fully reporting, possess a sizable shareholder base, and offer Western management. The U.S. companies are motivated with the prospect of obtaining a strong and profitable enterprise, as its minority ownership in the newly merged company far outweighs its previous majority position.
The Chinese company is transformed by the GEP program. Through a reverse merger (the Chinese private company merging into the U.S. public company), the newly merged company usually increases in value by many millions of dollars, and the U.S. investment community is reinvigorated by the inclusion of a dynamic Chinese enterprise. One key result is access to tens of millions of dollars in funding from Western sources.
GEP is not an Investment Banking firm. GEP operates more like a holding company, but takes a larger equity stake and a more active management role than in a traditional structure. Simply put, we have a passion for incubating and developing Chinese companies. We offer more than services. GEP participates with the Chinese company as a partner, not a consultant. From the beginning GEP invests its own capital, resources and management team to help restructure, and markets the Chinese company in the United States and abroad. We will establish a foreign or US corporate entity, and act as the US representative for the new public enterprise. GEP will not only organize the merger, but we will (a) develop a strategy for implementation of its business model, (b) a market for its products, and (c) solutions to the many challenges. GEP becomes the true Western partner over the long haul.
Our commitment to helping increase shareholder value in this segment of the market is unsurpassed and our success is founded on delivering these innovative financial solutions. GEP has the experience, network, and dedication to create visionary and successful strategies, strategic alliances, and profitable growth for Chinese companies in US financial markets.