Merger and acquisition may be a suitable option for many foreign companies to enter the Chinese market. While it may be a quick way to get into the market, you need to know exactly what you are combining with or what you are acquiring.
At IPO Pang, our corporate department has over 30 years of experience in structuring pre- and post-combination entities with complex ownership and jurisdictional issues consistent with both the client’s objectives and Chinese legal requirements, in addition to the crucial due diligence needed prior to the combination or acquisition. All too often foreign enterprises, in their desire to move forward with a deal quickly, fail to recognize the warning signs that trouble lies ahead with the proposed acquisition or combination. At IPO Pang, we have a group of forensic accountants that help decipher what is often the “two sets of books” issue involving a Chinese company, and provide the information that enables the foreign enterprise client to make informed decisions on valuation, pre- and post-acquisition management relationships, and controls.
Numbers are the language of business and our M&A team is adept at leveraging our experience, business acumen and legal knowledge to facilitate and advise the foreign enterprise client every step of the way. We have experience with many segments of business, including:
We are often called upon to participate in early strategic meetings, and we walk the foreign enterprise client through the issues of structuring, negotiating, drafting, due diligence and completion of the business combination transactions. Where approval is needed from government authorities, we take the lead in obtaining all of the informal approvals before we begin the process, and seek prompt ratification of a formal approval post-acquisition.
In cases where the China operation is merely one component of a larger combination or acquisition, IPO Pang is experienced in working and collaborating across borders with other attorneys, and can take a leading role to smoothly complete the deal.
While risk assessment is an important part of the role IPO Pang plays as a member of the M&A team, we believe that identifying opportunities and value creation are also an indispensable element of the service we provide to the foreign enterprise client. Closing a transaction on behalf of the foreign enterprise client is a given, but enabling the foreign enterprise client to better achieve its Chinese business objectives through clever corporate structuring and management agreements is another whole level of service that many aspire to but few can deliver. At IPO Pang, we have the depth and know-how to assist the foreign enterprise client with virtually every form of combination, acquisition, buyout, takeover and tender offer. We bring to the table on every representation a level of professionalism, astute business acumen, knowledge of the industry and pragmatic commercial sensitivity that is unrivaled by other firms.