China Mergers & Acquisition is a kind of method which allow a person or investors to enter into Chinese Market rapidly without going through the pain of starting from scratch. Tannet helps you prepare and implement your Mergers & Acquisition in China, from the initial partner or target identification and selection, due diligence, valuation of target company, to the legal framing and actual engineering of the transaction, you will find in us a professional partner with your interest in mind.
Ways available for Mergers & Acquisition
One kind of mean for China M & A is that the acquirer will first negotiate a purchase then ask the Chinese stock market to suspend trading in its own shares. The acquirer will announce the deal publicly and if all goes to plan its share price will surge, often by as much as 50 per cent to 75 per cent.
Another mean for China M & A is a close cousin. In China, it’s becoming common practice is to persuade a friendly domestic investment fund to buy the target company then hold onto it for as long as it takes the intended final owner to get the money in place through the secondary offering. In other jurisdictions, this might be deemed a concert party and so likely to land everyone in prison.
Services offered by Tannet
1. Inbound/China Mergers & Acquisition
Mergers & Acquisition is a quick way to get into the Chinese market without going through the pain of starting from scratch. The opacity of Chinese firms, the lack of public information on management background and ownership structure, the fast changing regulatory environment and the overlapping of local and national government agencies make it however complex and rather risky without adequate preparation and professional assistance.
2. Outbound/Overseas Mergers & Acquisition
Tannet also provides outbound Mergers & Acquisition advisory services for Chinese firms looking to invest overseas, with a focus on emerging markets (South East Asia, Middle East, Russia, Eastern Europe, Latin America and Africa).
3. WFOE Brokerage
A growing part of our Mergers & Acquisitions practice is related to brokering transfers or sales of existing Wholly Foreign Owned Enterprises across China.
4. Selling your WFOE
For business owners who want to exit their China investment, they can list their business with us for free in order to be introduced to potential buyers. Closing a China WFOE can take easily 10 to 12 months if not more; therefore transferring the business to a third party for a profit makes better sense.
Successful businesses can also entertain selling their operations to cash in and move to to new ventures.
While basic listing is free, we also provide active brokerage services for a retainer fee for companies and owners who are in a hurry to sell their businesses. We will contact proactively potential buyers both in China and overseas and work toward closing the deal in a limited time.
Our services are strictly confidential and no information about the potential sale would be disclosed to the public. Any potential buyer would have to sign a non-disclosure agreement.
5. Buying a WFOE
Setting up a new company in China is a lengthy process which can take easily half a year to complete, purchasing an existing WFOE is a faster way to get in business immediately, especially if that company has the necessary licenses that you are looking for.
Tannet has an internal database of WFOEs that are available for sale, and can also do an acquisition target search and proactively contact existing businesses or competitors to explore selling options.
China Mergers & Acquisition Advice
Since good China Mergers & Acquisition strategy is based primarily on extensive research and validation, buying companies must first become experts on their target’s business and track record. After that, they should analyze its financial position, technological sophistication, and market share. Finally, buyers should take a wider view, looking at conditions in the respective economies of both companies’ home countries, together with corresponding political, legal and cultural conditions. Once this is done, the information can be collectively analyzed and validated, providing a better understanding of prospective difficulties in consolidating the two companies.
Contact Us
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com.
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