Mergers and Acquisitions in China: Structuring and Valuing M&As on the MainlandPublished: November 2010
Continued reforms and a rebounding economy following the Global Financial Crisis are fueling mergers and acquisitions in China.
- No. of Pages: 12 pages
Continued reforms and a rebounding economy following the Global Financial Crisis are fueling mergers and acquisitions in China. With M&A activity on the rise – there were several large deals in the industrial, financial and technology sectors – we use this issue of China Briefing to take a look at several aspects of M&As that foreign-invested enterprises should be aware of when investing in China. We first concentrate on how to structure an M&A in China, listing the advantages and disadvantages to several different types of acquisitions available to foreign investors. We then go through some steps that can be taken when valuing an acquisition. As China’s relatively young economy still often lacks reliable, independent high-quality information on a target enterprise, we describe how the asset appraisal industry works in China. Finally, we conclude the issue with an overview of the current M&A market on the mainland.