中文     English

In the past years, many companies have tried to use M&A as a key strategy to expand in China or in the US/European market.  The strategy may sound very reasonable in theory, but companies soon find out that such a strategy is very difficult to implement in the target market for several reasons:

 

Key M & A related issues in China:

•      Too rich valuation

•      FCPA compliance

•      Lack of strong management team

•      IP issues

•      Local companies unwilling to sell

•      Lack of large target companies

•      Government approval

•      Lack of growth in the future

•      Accounting and tax issues

•      Corporate structure issues

 

Key M&A related issues in US and Europe

•      Companies are losing money.  Such losses may impact the earnings of public Chinese companies, making such acquisitions very risky

•      IP litigation or other type of litigation

•      Too rich valuation

•       Product portfolio has poor reimbursement in the Chinese market 

 

All these factors have made the implementation of M& A strategy very time consuming in the local level.  Strong expertise in the local market will be the key to address many of these challenges.

 

At BFC Group, we will have a partner in the local level to work with our clients.  We understand our client’s goal and work with our clients to develop a realistic M & A strategy that can be implemented in the real world.  We are open and realistic to our clients about what is possible and what is available in China. Throughout the process, from the initial meeting to the final execution of the plan, BFC will guide our clients with attention and diligence.

 

 

 

 


 

 

Hot Topic

Business development options in China: a brief of BFC Group and a high level summary of summary of different business development deal structure for partnership in China.

Link: Business development options in China.pdf