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.

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.

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.

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.

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.