A. Louie provides invaluable and prompt China Mergers & Acquisitions (M&A) support from a local level and beyond. We have performed many successful due diligence investigations for major foreign companies in support of their mergers and acquisitions of domestic companies. Our China Mergers & Acquisitions support services are specifically tailored to the needs of clients acquiring Chinese companies or assets.
China Mergers & Acquisitions is a complex process. Performing due diligence and researching potential partners’ backgrounds are greatly hindered by the opaque way things are done in the country. In some instances, local governments are known to have worked closely with local businessmen to mislead potential investors. Even accessing certain public information can be difficult, and may depend on one’s relationship with the authorities in charge. Information on people, property and assets may reside in multiple repositories and a large number of different government agencies, not just in one city but all over China. Our due diligence investigations involve thorough examination and analysis of relevant information at all available databases and public records, and resort to an extensive network of local sources to verify the results or make up for any deficiencies.
We provide comprehensive background checking of business reputations and corporate ethics, financial intelligence, history of litigation and disputes, and all other relevant matters. In the case of principal officers or influential personnel of the targeted company, we undertake full-scale background screening and evaluation of the personal and professional integrity, and competency of such individuals. We systematically research and verify assertions or misrepresentations of fact, or uncover non-disclosure of material facts. We work with clients’ key personnel, lawyers and accountants to acquire, assemble and coordinate critical intelligence needed by clients to determine whether or not to consummate the transaction.
A. Louie provides the best business intelligence and all material information clients need to make informed decisions. We provide invaluable ‘behind the scenes’ M&A support from a local perspective.
CASE EXAMPLES:
Mediating Between Foreign Companies and Government Institutions
Within the Textile Industry
European Apparel MNC desired to proceed with an M&A transaction in Guangdong province. The acquisition of a Chinese company was supported by the local District Government but was blocked by the Municipal Ministry of Commerce (MOFCOM) office. A. Louie worked with the company and the Municipal Ministry of Commerce (MOFCOM) office with mediation and support from the Provincial MOFCOM in Guangzhou to negotiate a successful approval for acquisition on behalf of the European MNC.
Within the Pharmaceutical Industry
An American pharmaceutical company desired to acquire a sizable Chinese one and experienced bureaucratic and political wrangling at the provincial level. A. Louie worked with the company and various relevant provincial departments such as Provincial Food & Drug Administration, Provincial MOFCOM, Provincial AIC and Tax Bureau, etc. The negotiations were mediated and supported from the State level in Beijing.