Michael discusses best practices to conduct due diligence in Merger and Acquisition (M&A) transactions in Greater China. Unlike in the west, China due diligence is not verifying documents on a checklist. The key is to verify information in the context of a changing society. If one does not understand that society’s past, present and future, the mechanical exercise could create significant operational issues. The due diligence process does not end at the closing.
Nick provides a detailed chart of the process to establish a joint venture in China. This roadmap demystifies the process by setting forth clearly the role and tasks of each participant in a joint venture formation, from the concept stage through the wrap up stages. This lifts the curtain and illustrates at each stage in a Joint Venture’s life cycle what the foreign/local JV parties are supposed to do as well as the legal/business team and the government.