China megers and acqucisions (M&A) service
Hotline: 86-755-82147392, Email:info@citilinkia.com
Squire Sanders is pleased to present the sixth edition of its Global M&A Series, a study of activity in the Chinese M&A market, published in association with Mergermarket. This study examines China outbound M&A trends, with a detailed review of financial investors, sector snapshots.The China M&A is that short for China megers and acquisitions.
Prospective multinational acquirers are frequently deterred by the misperception that value-generating acquisitions are nearly impossible in China. They believe they cannot attain majority control; while this is true in a few industries, it is more the exception than the rule. They see the regulatory process as opaque and painstaking to navigate without deep existing personal connections. They believe that asking prices are too high and can be justified only by realizing a degree of synergies, particularly revenue synergies, that is somewhere between difficult and impossible to achieve. They doubt their ability to bridge differences in culture and management systems and effectively integrate a Chinese operation with their own.
Our experience with numerous multinational acquirers of Chinese companies has demonstrated that these hurdles can be overcome. Successful M&A in China is by no means easy: every step of the process, beginning with due diligence, presents a unique set of challenges. Two critical steps are particularly daunting: regulatory approval and postmerger integration. Both are difficult but need not be seen as impenetrable black boxes. Regulatory approval can be approached in a systematic manner, and cultural differences can be decoded to create a customized integration process.
China's capital market regulator has eased some of the rules for mergers and acquisitions in China.China's securities market regulator approved the merger of top train makers, the CNR and the CSR, without any hesitation.
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For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com