Notice: Undefined offset: 2 in /home/wwwroot/hendersen/public/app-home/index.php on line 8
Our Work - Hendersen Taxand
Home > Our Work > Merger and Acquisition

Common Issues

The following issues are commonly encountered by Multinational companies when doing a M&A transaction in China:

  • Lack of transparency in the entire market, difficult to get access to potential target's information
  • Culture difference exists. If not using the appropriate language, the deal may be killed from the very beginning
  • The target's financial information is not sufficient to work-out the financial model or business valuation
  • The accounting principle used by the target is much different from IAS/US GAAP
  • Target uses two set of books, one for management reporting, one for tax reporting
  • Need to take over a huge labor force from the target
  • The statutory valuation for state-owned companies may generates very different results from business valuation
  • Target is overall lack of awareness of environmental, health and safety issues
  • The transfer pricing between the target and its related parties is a mess
  • The regulatory requirement in certain restricted industries is complex

The list goes on.

OUR WORK

Corporate Tax
Common Issues Our Services
Merger and Acquisition
Common Issues Our Services
Investment Advisory
Setting up in China Setting up service
Outsourcing
Common Issues Our Services
Human Capital
Common Issues Our Services
Customs & Trade
Common Issues Our Services
Transfer Pricing Services
High Net Worth