Martinez Construction Company in Germany
MARTINEZ CONSTRUCTION COMPANY IN GERMANY
1. General presentation of the case study (Summary)
Martinez Construction is a well-established construction company in Eastern Spain. Because of a recent decline in contracts in the Spain society, Martinez Construction Company needed to expand to international market in order to survive (expand and grow). After a survey in the international market, the newly formed Democratic Germany seemed the perfect place. Furthermore, the best solution was to acquire an existing firm with the help of Treuhandanstalt (privatization agency). This was a result of the lack of liquidity of the Martinez Company. Therefore, an alliance with another German company would not allow it to establish itself as a serious competitor on the international market.
The intermediary for Martinez Construction was THA (Treuhandanstalt), a company created in the former German Democratic Republic, whose main purpose was to find private buyers for some 13 500 business and 15 000 parcels of real estate that had been owned by the former German Democratic Republic. Their primary job was to sell the companies and match existing companies with buyers. That’s why Martinez Construction used THA’s services to find a new German company to acquire.
From the time of his arrival in Germany, Juan felt that he was having a difficult time just getting acquainted with the Germans. . They didn’t seem to have time to get to know Juan personally: rush and urgency to complete the sale was the focus of their approach.
Thus, THA found Konstruktion Dreizehn, based in Leipzig. Juan Sanchez was sent to handle the negotiations part of the acquisition in Germany. Juan was accompanied by Diego’s nephew and projected manager of the new German acquisition, Miguel Martinez. His background includes a business degree from a university in the United States, as well as years of employment
1. General presentation of the case study (Summary)
Martinez Construction is a well-established construction company in Eastern Spain. Because of a recent decline in contracts in the Spain society, Martinez Construction Company needed to expand to international market in order to survive (expand and grow). After a survey in the international market, the newly formed Democratic Germany seemed the perfect place. Furthermore, the best solution was to acquire an existing firm with the help of Treuhandanstalt (privatization agency). This was a result of the lack of liquidity of the Martinez Company. Therefore, an alliance with another German company would not allow it to establish itself as a serious competitor on the international market.
The intermediary for Martinez Construction was THA (Treuhandanstalt), a company created in the former German Democratic Republic, whose main purpose was to find private buyers for some 13 500 business and 15 000 parcels of real estate that had been owned by the former German Democratic Republic. Their primary job was to sell the companies and match existing companies with buyers. That’s why Martinez Construction used THA’s services to find a new German company to acquire.
From the time of his arrival in Germany, Juan felt that he was having a difficult time just getting acquainted with the Germans. . They didn’t seem to have time to get to know Juan personally: rush and urgency to complete the sale was the focus of their approach.
Thus, THA found Konstruktion Dreizehn, based in Leipzig. Juan Sanchez was sent to handle the negotiations part of the acquisition in Germany. Juan was accompanied by Diego’s nephew and projected manager of the new German acquisition, Miguel Martinez. His background includes a business degree from a university in the United States, as well as years of employment