Mergers & Acquisitions
For businesses who want to do business in China by acquisition or merger with a local company, the laws governing the acquisitions of a Chinese registered company are complex and often require the insertion of an intermediary subsidiary to maximize flexibility and tax benefits. A domestic company acquired by a foreign party renders the resulting entity being classified as a “foreign or foreign invested domestic legal entity,” which operates on slightly different and often confusing rules.
At IPO Pang, we have handled the negotiations, drafting, and closing of hundreds of mergers and acquisitions – representing either the seller’s side or the buyer’s side. Our firm has a solid understanding on the customs and practices in this area of the law. In China, the law is to be followed, the customs are to be respected, and these practices need to be followed if the transaction is to be closed on time and on budget.
The difficulties in most cross-border mergers and acquisitions transactions lie in poor due diligence, inadequate understanding of the regulatory, legal and political risks of a transaction, a gross underestimate of the timetable to complete the transaction, and a lack of integrating the target into existing operations. We assist our clients from the inception of the deal through the final closing, including post-closing integration and purchase price adjustments where warranted.
Industries where IPO Pang has had experience include:
- Information Technology
- Medical Devices
At IPO Pang, we often represent the foreign party on an acquisition or divestiture. We can use a hybrid fee structure where we share the risk with our clients to ensure the transaction is consummated to our client’s satisfaction. On the seller’s side, we often work with our clients to maximize value and minimize legal exposure post sale. On the buyer’s side, we help reduce acquisition costs and risks by identifying potential problem areas through thorough our due diligence and investigative work. We help our clients fulfill their aspirations and eliminate any buyer’s or seller’s remorse.