China has emerged as a genuine world player in global M&A markets in the past five years. While Chinese companies are actively looking to consolidate and expand to overseas via acquisitions; foreign companies also try to snap up stakes in their Chinese counterparts to expand into the fast growing economy. Among all the top acquirer nations in China, Britain seems more conservative compared to the U.S. In the first quarter of 2008, Britain did eight M&A deals in China worth 25 million pounds ($49.7 million) while the U.S. did 39 deals worth more than 348 million pounds.

Despite the general improvement in the economic and political environment in China for cross border mergers and acquisitions, China still poses a number of challenges, even for those experienced executives in overseas acquisitions. While the process for conducting cross-border M&A in China is similar to elsewhere, China’s very different commercial, regulatory and cultural environment adds an extra layer of complexity at each stage of the M&A process.  For example, there is sometimes a lack of integrity and ethical practices on the Chinese target’s management. Ownership of assets may be unclear and there may be conflict of interest among stakeholders. Last but not least, the potential Western buyers may find the expectation on pricing from the targets mismatching their own.

China Business Solutions, along with its strong local partners in China, can offer you a full M&A service starting from pre-mandate all the way to closing the deal, as shown below.

Pre-mandate:

• Screening and identifying potential targets for client according to its acquisition strategy and criteria/initial contact, target approach;
• Estimation about their valuation, product offering and likely to sell.

Pre-acquisition

• Preliminary due diligence;
• Conducting allocation and separation of assets for acquisition in the target’s business;
• Helping the client with negotiation of the Term Sheet (Heads of Agreement).

Deal Closing

• Financial advisory: valuation and negotiation;
• Commercial and technical due diligence;
• Official legal and financial due diligence;
• Helping on signing the final contract.

Our highly qualified and experienced M&A team will navigate you through the complex M&A process in China, and help you make the right decisions in a less transparent deal environment. With our intervention you acquisition process will be expedited and concluded smoothly. We can also continue to help you with integration after the acquisition. 

Call us at +44 (0)1223 421968 or email us at info@chinabusinesssolutions.com for a confidential and no-obligation chat.