Enterprises are engaged in merger & acquisition primarily for the purpose of horizontal or vertical consolidation and diversified business, as evidenced by the model of merger and acquisition applied by Hong Hai in the past. The key to success of merger and acquisition resides in searching and targeting the object company to help evaluation of the merger and acquisition cost, including the costs for regulations, taxation and fund. Additionally, the risk evaluation is also indispensable, covering the legal risk, accounting risk, credit risk, exchange rate risk and political risk. The legal risk includes product liability (e.g. the indemnity potentially caused by the recent case about addition of melamine to dairy products), environmental protection liability (indemnity against renovation or pollution), taxation liability (tax evasion and overdue tax), pension fund liability (leading to increase in the operation cost), contract liability (critical to the profitability or liquidated damages), litigation liability, administrative liability, guarantee liability, off-balance-sheet transaction liability (particularly derivative financial products, which cannot be found on the balance sheet, thereby causing it necessary to evaluate the potential risk and impact thereof, e.g. the impact brought by the U.S. mortgage and Lehman Brothers’ investment in structured notes)
Scope of our service:
1. Assistance in strategic analysis
2. Assistance in negotiation and conclusion of contracts
3. Legal risk evaluation
Scope of our service: 1. Assistance in strategic analysis 2. Assistance in negotiation and conclusion of contracts 3. Legal risk evaluation