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Financial consultation on M&As
 
1. Overview
Through this service, CMB advises companies on significant transactions in the areas of ownership, capital structure and business models. Significant transactions generally fall under three categories: business expansion activities such as mergers, acquisitions and joint ventures; business contraction activities such as divisions, spin-offs and liquidation; transfer of ownership and control rights, such as share transfers, public company privatization, management buyouts and reverse takeovers.

2. Target customers
Finding suitable buyers

Buyers should meet the following criteria during expansion: sufficient cash flows; strong financing capability; market and industry leadership; a strong desire to acquire competitors or consolidate upstream and downstream sectors.

Finding suitable targets

Target companies should meet the following conditions: market segment leaders; high investment value; suffering bottlenecks in terms of funding, technology, HR and business transformation but unable to overcome these challenges on their own or shareholders planning to sell shares. Moreover, the companies have a strong desire to introduce strategic or financial investors.

3. Service description

CMB offers the following financial consultation services for buyers: assisting them to find and assess suitable target companies; providing a proposal that covers takeover strategy, price, terms, procedures and financial arrangements; assisting them to negotiate takeover terms with the target company; assisting in the preparation of documents and announcements relating to the takeover.

CMB offers the following financial consultation services for target companies: tracking their share prices and giving them early-warning; assisting them to develop a strategy against hostile takeover bids; assisting them to review the bid price of a friendly takeover offer in terms of fairness and fully realize their value through negotiations with possible buyers; assisting in the preparation of related documents and announcements.

4. CMB's advantages

As a commercial bank, CMB is more competitive than security companies and consulting firms in advising on M&As:

CMB seeks long-term partnerships with companies;

Benefiting from its close contact with over 400,000 industrial and commercial companies in different sectors, CMB can fully explore project opportunities and add value for its customers;

Its strong capital position enables CMB to finance various M&A projects. As a leading commercial bank that is highly-regarded at home and abroad, CMB has a strong basis in the Chinese market, and has developed a strong insight into China’s conditions and policies, marketplace and business practices.

CMB offers a complete range of financial services. Based on its huge pool of financial resources, CMB is able to provide structured financing and a package of financial services for M&A activities based on the law and its own policies by combining approaches such as M&A loans, trust financing and private placement;

Professional team: CMB’s M&A service team can conduct a full range of M&A-related activities such as due-diligence, plan design, negotiations, and transaction management. By partnering with numerous global investment banks, trust companies, law firms, accounting firms, rating agencies and PR companies, CMB offers superior M&A services for customers. 

Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.