Mergers and acquisitions (M&A) in China are complex processes that require careful consideration of legal, financial, and operational factors. In a share deal, the buyer acquires the outstanding stock of the target company directly from its stockholders. This means that the target company's name, operations, contracts, and other assets remain unchanged after the acquisition.

 

One of the main advantages of a share purchase is that it can simplify the assignment and third-party consent procedures that are often required in an asset purchase. However, since the buyer is acquiring the entire company, a share purchase involves a "change of control," which means that the buyer must identify contracts that require consent.

 

At Global CPA, our team of professionals has extensive experience in advising clients on M&A transactions in China, including share deals. We can help our clients navigate the legal and regulatory landscape in China and ensure that they understand the risks and benefits of different transaction structures.

 

Our services include conducting due diligence on the target company, negotiating the terms of the transaction, preparing the necessary documentation, and assisting with regulatory filings. We work closely with our clients to ensure that their interests are protected throughout the entire M&A process.

 

With our expertise in Chinese tax laws, accounting standards, and business practices, we can also help our clients maximize tax efficiencies and identify potential cost savings. We have a deep understanding of the complexities of doing business in China, including navigating cultural and language barriers, and we can provide our clients with valuable insights and advice throughout the transaction.

 

Overall, Global CPA is committed to delivering excellence in M&A advisory services to our clients in China and internationally. Our goal is to help our clients achieve their strategic objectives and maximize the value of their transactions.

M&A in China - Share Deal.pdf