China's
Merger and acquisition business becomes booming owning to the recent
great development of China's economy. More and more foreign investors
now opt to start business in China by merger and acquiring existing
business (foreign invested companies, domestic companies or even state-owned
companies) in China.
We have experienced attorneys in structuring merger & acquisition
in China and we are familiar with all kinds of applicable merger &
acquisition means in China. We have advised client to buy China assets
with offshore vehicle or onshore vehicle, in the way of assets to asset,
equity to equity, asset to equity or equity to assets. When we design
the acquisition scheme, we always give client's concern first priority.
For example, if client concerns about specific closing date, we will
advice client to use offshore transaction to avoid the prolonged examination
and approval procedure imposed by Ministry of Foreign Trade and Economic
Cooperation (MOFTEC) or its local agencies. If client concerns about
liabilities he may bear, we will advice client to buy assets instead
of equity to avoid contingent and potential liabilities.
Besides structuring, our attorneys, together
with our Chinese consultants, are capable to conduct thorough due diligence
during client's merger & acquisition transaction. Generally we will
focus on the following areas of the target company: legal presence of
the corporate; legal title to real property (including land use right);
legal title of the assets (is there any mortgage, charge, lien or other
encumbrance over it?); tax, tax exemption and the validity of such exemption;
all the borrowings/liabilities and operation and scope of operation
and labor issues, etc.
| 
