We conduct all the necessary investigations to make sure any risks associted with your target company of investment have been identified.
Our experienced team ensures a clear and effective communication process to ensure that buyers and others are on the same page at the time of a purchase.
Acclime uses its global expertise to make sure all your international compliance and governance needs are protected moving forward.
Mergers & acquisitions deals may take the form of either;
This would depend on many factors. For example, if a foreign investor already has a reliable business associate in China, the foreign investor may wish to consider entering into a merger with the existing entity. The advantages of a merger with a local counterpart are, among others, ready local knowledge and channels to penetrate the local market and the comfort of having one less competitor in the market while the existing business continues.
In some instances, the foreign investor may worry about the hidden liabilities in the target company. Under these circumstances, the foreign investor may be reluctant to enter into a merger with the target company but wish to purchase only the assets of the target company. Therefore, the foreign investor may form a separate entity and thereafter acquire the assets of the local company through the newly formed entity. An asset deal enables the foreign investor to acquire only the viable assets without having to take over the accumulated debts and liabilities of the local entity.
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Enterprise Income Tax Treatment of Enterprise Reorganisation Caishui  No.59, as a general proposition, the relevant tax treatments of merger are as follows: