Understanding Mergers and Acquisitions in China - Preview

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The environment for mergers and acquisitions (M&A) in China has fundamentally changed
in recent years. Affected in part by the global economic crisis and wavering Chinese growth,
the rate of foreign acquisitions in the country has fluctuated considerably over the past
ten years, going from 42 deals worth approximately RMB 30 billion in 2008, to 39 worth 78
billion in 2013, to 61 deals worth 35 billion in 2015.
Conversely, Chinese outbound acquisitions have experienced an unprecedented upsurge in
the last two years. A sharp rise in capital outflows resulted in Chinese outbound investment
surpassing that of major developed economies in 2015, while Q1 2016 saw China record
its largest ever quarterly share of global acquisitions, making up a sixth of all M&A activity.
The contrasting dynamics of outbound and inbound M&As in China has served to transform
the M&A market landscape in the country. While the acquisition is still undoubtedly a
swift and effective means for foreign companies to enter the Chinese market, there are
now a host of new considerations for firms to take into account prior to committing to
any investment, including uncertain market conditions, bigger domestic players, and new
regulatory frameworks.
In this issue of China Briefing magazine, we set out to guide foreign investors through
the mergers and acquisitions process, from initial market research, to set-up procedures
and regulatory hurdles, and finally thorough important due diligence considerations.
With experience in China’s M&A market since 1992, Dezan Shira & Associates is perfectly
positioned to ensure that the M&A is the right investment vehicle for your company’s
venture into China.
This Month’s Cover Art
李继森
Oil on canvas, 180x150 CM
Wan Fung Art Gallery
wanfung@12 .cn
+86 0760 8333 861
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Introduction
With kind regards,
Alberto Vettoretti