Initial Target Investigation
Before a full due diligence investigation is started, certain situations in China may benefit from a basic initial target investigation of a potneital investment. Our consultants work with our clients to provide the following advisory services:

·    Company History Search – We can contact local government authorities to understand the background, structure, ownership, previous mergers, acquistions and joint ventures of the target company.  This step process can give insight into the reputation of the organization.

·    Contact Establishment and Negotiation – We can approach targets on behalf of an acquiring party to establish contact, develop a relationship and begin negotiations.   

·    Management Background Search and Interview – understanding a target’s current leadership can have a profound effect on the future of the operation.  Determining which individuals serve in key rolls and exploring their commitment to new management should be investigated.

·    Governmental & Regulatory Investigation – the legal framework for foreign companies operating in China is a relatively new concept and it is continuously evolving.  An understanding of these regulations and policies can guide an acquisition approach.

·    Memorandum of Understanding – although only required in certain acquisitions, we strongly encourage our clients to use a non-binding agreement such as this.  A MoU is helpful as some targets may not understand the basic concepts involved with Due Diligence and this can be an educational tool.

Please contact Lulu Zhang, CPA, at Lulu.Zhang@ChinaFIG.com or Richard Zhang,MBA,at Richard.zhang@ChinaFIG.com with specific questions related to M&A in China.