Mergers and Acquisitions

Mergers & Acquisitions


   Both the theory and practice of corporate mergers and acquisitions have advanced with times. The traditional efficiency theory believes that mergers can promote the overall efficiency of the enterprise, i.e. synergy effects"2+2 > 5", including economy of scales and economy of scopes, which can be further divided into the synergies of operation, management, corporate finance and multi-aspects. Examples include winning core resources, leveraging the management skills, raising financial credit while reducing capital costs, reducing taxes, and multi-dimension development to avoid risks compared to singular industry. "Set the information ahead of deployment of troops"– it is whether the enterprise can fully understand the target's true fundamentals that leads to a wise decision in Mergers & Acquisitions. Meanwhile a wrong M&A decision could delay a group's entire development, or even destroy the whole enterprise if trapped in debt obligations.

    We make the most out of our investigation capacity and extensive information channels, helping clients to unveil the companies that have biggest growing potentials and the most appropriate to buy, hence lowering the risk of asymmetric information and the risk of M&A before transaction begins. With a deep, case-by-case research into Chinese local companies and an insightful understanding to the situation and prospects of various industries/sub-industries, we can help clients to quickly grasp the dynamics, market capacity and development of the target industry, and thus select the companies that best fulfill clients’ request.

Option 1:
We provide advisory services throughout the M&A transactions:
1. M&A preparation phase
a. Identification of values of potential opportunity
b. Analysis of M&A target
c. Analysis of market and industry
d. Feasibility analysis
e. M&A strategy and project planning
2. M&A execution phase
a. Due diligence
b. Assessment of risks and valuation of assets
c. Rough valuation of M&A transaction
d. Setting up transaction structure
e. Negotiation support
f. Financing arrangement support
3. M&A completion phase
a. Organization integration
b. Management process renovation
c. Customer management
d. Tax coordination
e. Exit strategy


Option 2:
We provides M&A advisory services mainly in three levels:
1. M&A strategic consulting
a. Vision
b. Industry analysis
c. Economic cycle analysis
d. Internal settings investigation
2. M&A planning consulting
a. Products and business model
b. Operation and management
c. Architecture planning
d. Branding
e. Resource allocation planning
f. Government relations
g. Value and risk analysis
3. M&A professional services
a. Collaboration
b. Contract drafting
c. Financial advisory
d. Tax advisory
e. Financing advisory
f. Human resource consulting
g. Project management consulting