Equity Merger and Acquisition
In recent years, with the rapid development of China's economy and the continuous optimization of the investment climate, more and more foreign investors start to invest in China. Investors are investing in a variety of ways. According to Chinese law and the different investment areas, foreign investor can directly set up wholly owned foreign enterprise (WOFE), foreign joint ventures, Sino-foreign joint ventures, etc. Equity Merger and Acquisition of Chinese Company is becoming one of the important method for foreign investors to invest in China.
The advantage of equity merger and acquisition is with the aid of existing company platform (newly established Foreign Capital Company, need 3-6 months according to the type of company), takes advantage of existing resources, and develop business rapidly in china.
The disadvantages of the equity merger and acquisition are related risks (financial and legal) of Target Company that need to be cleared and maximum avoided in advance. There are complex tax issues in the equity mergers and acquisitions process, and if the target company is stated owned company or collective enterprise, then the acquisition process will be more complex. It needs to be listed on China's Property Rights Exchange, passes audit and approval procedures by upper management department of state-owned enterprises or collective enterprises, and even needs to obtain monopoly investigation and approval by China's Ministry of Commerce.
So during the process of equity mergers and acquisitions, investor’s looking for a professional agency to help with the issue of equity merger and acquisition is essential; StartChinaBusiness is a professional agency engaged in investment advice, establishment of foreign capital company, equity mergers and acquisitions, will provide you with professional an efficient service;