On a global
basis, mergers and acquisitions (M&A) were the prevalent method through
which multinationals conducted foreign investment, while “green field”
investments were virtually the only option available to foreign investors in
China in the past. However, the environment for M&A in China has fundamentally
changed in recent years, affected in party by the global economic trend and
with the intention of stimulating M&A related activity, Chinese Government
have introduced and consolidated various laws and regulations since 2002.
The robust growth of China’s economy and its further liberalization of the domestic market after its accession to the World Trade Organization have worked together to fuel the accelerated pace of M&A activity in recent years. It is foreseeable that M&A activity, which offers foreign investors a more immediate method of entering the China market as opposed to “green field” investment, will continue to boom in China in the years to come.
Suppose a US-based company “ABC Co.” has preliminarily identified an ideal target company in China, which it intends to acquire. Before proceeding to conduct an in-depth financial assessment and structure the prospective acquisition, it is advisable to take the following into consideration: 1. M&A transactions in China require examination and approval by Chinese government agencies. 2. The sectoral restrictions applicable to “green field” investment in China are also applicable to foreign-related M&A transactions. 3. Ascertaining the nature and desirable businesses of the target is essential to structuring the M&A transaction.
Due to the general lack of transparency or proper regulations in China, many Chinese companies may have certain irregularities incurred somewhere or sometime in the course of its business. It is imperative that a foreign investor resolve any irregularities before entering into the transaction. Therefore, conducting a legal due diligence exercise is often just as important as conducting a financial due diligence to determine the viability of the target company in a merger and acquisition deal
Our lawyer concentrate on Mergers & Acquisitions
practice and divide the field into M & A of listed companies,
unlisted companies, foreign investors, SOE, etc. Our clients include various
listed companies, group companies, foreign-funded companies, big state-owned
companies and institutional investor concerning their investment and business
transactions in China.
Our lawyer have represented acquirers, target companies,
financial advisors and major shareholders in all types of complicated transactions
and accumulated rich experiences. We are competent to provide clear, pertinent,
timely advice and effective solutions in accordance with the laws of China.
Our lawyer have advised on cross-border and domestic
M&A transactions in a wide range of sectors, including the financial, Real
Estate, mining, infrastructure, and yachting industries. We also have a
professional and international team of talented attorneys in order to assist
our clients to facilitate the deals.
What challenges our client face?
1. Feasibility of policies of industry
admittance
2. Transaction structure /plans with legal
risk involved
3. Historical issues and potential legal
risk blocking transaction
4. Higher transaction cost and transaction
extremely time-consuming
5. Problems of Resource integration in
corporate governance, human resource, and culture after acquisitions
6. Scope of services
7. Legal advice on industry admittance
policies
8. Design of transaction structures/plans
9. Tax planning
10. Conducting legal due diligence
11. Review, drafting of transaction
documents
12. Participating in important M & A
negotiation
13. Provision of advice in respect of
authorizations and approvals required as part of the transaction
14. Assistance in conducting approvals with
government agencies
15. Assistance in execution and delivery of
transactions
16. Resource integration after acquisitions
Our lawyers have accumulated wide experience
in Mergers & Acquisitions M&A Legal Services in Pearl River Delta
Area
The Pearl River Delta economic zone (PRD) is one of China's leading economic regions and a major manufacturing centre. It locates at the Pearl River estuary where the river enters the South China Sea. The zone is formed by 9 cities, namely Guangzhou (the provincial capital), Shenzhen, Foshan, Zhuhai, Jiangmen, Zhongshan, Dongguan, four districts and counties of Huizhou and four districts and counties of Zhaoqing.
Contact Tom Lee if you need English Speaking Lawyer From Guangzhou Law Firm Offer Mergers & Acquisitions M&A Legal Services in Pearl River Delta Area( Guangzhou, Shenzhen, Foshan, Zhuhai, Jiangmen, Zhongshan, Dongguan, Huizhou, Zhaoqing)
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