Faculty News | Economist | 01
Private equity in China: Hony ahoy
Re: Josh Lerner
The logic behind Hony's shift towards helping Chinese firms venture abroad is less obvious. In 2008 it advised Zoomlion, a struggling heavy-equipment SOE that it had previously helped restructure, on its acquisition of CIFA, an Italian firm. The deal was ill–timed, coming on the eve of the financial crisis. But it still made good strategic sense, according to a case study about the purchase by Josh Lerner of Harvard Business School.