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Investment and M&A

M&A stands for mergers and acquisitions, which are important aspects of corporate strategizing, corporate finance and management. M&A can help a company to grow rapidly without a need to create another business entity. For example, mergers can help companies to achieve economies of scale, integrate horizontal or vertical resources, enhance management efficiency, diversify risks and achieve more beneficial tax rates .

Mergers may be divided into two types: mergers and consolidations. Following a merger, the acquired company’s legal personality disappears and all its assets and debts are taken over by the acquiring company and a brand new company is formed under a new legal personality to take over the assets and liabilities of the merged entities.

Acquisitions are more limited in scope and may be separated into stock and assets acquisition. Stock acquisition aims to purchase parts or all of the assets of the target company to make the target company become the buyer’s long term investment enterprise. By acquiring the state in the company, the company may face additional risks since it takes over rights, obligations, assets and debts of the target company. Thus, asset acquisition is more appealing to risk aversive businesses, since it aims to purchase parts or all of the assets of the target company. It is general transaction and the buyer does not have to undertake the debts of the target company.

M&A involves highly complex legal arrangements, which require professional knowledge of various fields such as law, tax and finance. The procedure must not only be done correctly, but must also be efficient.

Our M&A team is composed of attorneys with experience of enterprise cooperation and tax affairs. We believe we can resolve our clients’ tax, financial and legal concerns.