Mergers & Acquisitions
M&A Advisory Services
ShineWing provides M&A advisory services for international clients in domestic and cross-border transactions. We offer comprehensive one-stop service at every stage of the transaction, tailored to the specific needs of different types of clients.
Transaction Process
1. Transaction Planning Stage
- Identify M&A target or joint venture partner both locally and internationally
- Conduct thorough investigation of the target
- Develop the plan for market entry and evaluate project feasibility
- Formulate M&A strategies
2. Transaction Execution Stage
(i) Financial and Tax Due Diligence
To minimise the risks associated with the accounting and tax issues of the transactions, ShineWing performs in-depth due diligence.
Financial Position
- Understand shareholding structure
- Analyse the structure and trends of profitability and costs
- Analyse assets and liabilities in detail
- Assess drivers behind profits and cash flows
- Conduct an integrated analysis of the target’s financial condition, capital structure, business performance and potential
Tax Position
- Identify financial and tax issues, and provide recommendations on mitigation
- Advise on M&A tax structuring
Risk Control
- Perform sensitivity analysis of revenue projections
- Highlight key success factors and risk factors
- Analyse the solutions to the related risks
(ii) Valuation
- Carry out comprehensive valuation of businesses and assets of the target
- Adjust purchase price based on the valuation result
- Review the target’s financial model
- Assess the rationale of the assumptions
- Apply appropriate methodologies based on the nature of the deal
- Provide independent and objective views on valuation
(iii) Deal Advisory
- Act as the financial advisor to the buy side or sell side
- Formulate deal negotiation strategy and manage the transaction process
- Organise meetings and support deal negotiations
- Devise and build efficient transaction structures
- Coordinate with different professional services providers on due diligence
- Assist in seeking government authority approval
- Assist in the preparation of Sales and Purchase Agreement and develop the financial and commercial terms for the transaction
(iv) Commercial Due Diligence
Commercial due diligence focuses on conducting extensive and in-depth analysis of the target and collecting opinions from industry experts.
Market and Regulatory Environment
- Evaluate market size and growth drivers
- Analyse demand, supply and the elasticity of price change
- Review government regulations and industry policies
- Review regulatory risks and recommend risk mitigation strategies
Suppliers and Customers
- Review the target’s supplier selection criteria
- Evaluate the quality of the target’s customer base and growth potential
- Assess the value proposition to customers and identify any unmet needs
Competitors
- Define the competitive environment in which the target operates and the competitive intensity
- Analyse the market share of the competitors
Target
- Assess the business plan and growth strategy of the target
- Evaluate management capability
3. Post-Transaction Stage
- Corporate Structure
Review the corporate structure and develop an effective strategy for integration or restructuring. - Risk Management and Internal Control System
Devise risk management and internal control policies for the parent company and the new entity, and set up consistent and transparent systems. - Accounting Systems and Financial Reports
Establish standardised accounting systems and apply unified accounting policies and procedures to the financial reports. - Information System
Integrate information management systems, with emphasis on management effectiveness of smooth operation. - Human Resources
Develop proper human resources solutions for the newly merged company, such as employee retention plan, performance and pay structure and human resources integration programme. - Subsidiaries Management
Establish effective management framework for subsidiaries, with emphasis on the enterprise management system and financial system of the subsidiaries.
Our Credentials in M&A Advisory Services
Over the years, our professional teams have accumulated a wealth of experience in different industries. We can provide all-round support throughout the transaction for clients spanning a range of sectors all over the world, focusing on the unique characteristics and needs of each industry.
The areas where ShineWing has been involved in cross-border M&A deals:
North America
- A Hong Kong listed company acquired a resort in Canada
- One of the global largest independent investment management firms invested in an environment technology company in the United States
South America
- A chemical engineering company in Chile acquired a supplier in China
Europe
- A leading digital map provider in China acquired a provider of automotive navigation services in Holland
- The largest footwear manufacturing group in Germany sought partnerships in China
- An electronics group in Sichuan, China intended to acquire a consumer electronics distributor in 11 European countries
- A large automotive company in China intended to acquire an engineering company in Europe
- One of the largest providers of fuel retailing solutions in Europe intended to acquire a fuel equipment supplier in China
Africa
- A China and Africa investment fund invested in a logistics company in Africa
Strengths of ShineWing
1. International Network
ShineWing has over 7,000 professionals worldwide. Leveraging the resources of our member firms, our professional teams have in-depth M&A knowledge, with a good understanding of different local markets as well as global vision, offering genuinely international services to our clients.
2. Global Experience
3. Leading Position
ShineWing was named as one of the Top 20 global accounting networks and had been awarded the Rising Star Network by the International Accounting Bulletin (IAB). ShineWing is also widely recognised by statutory and professional institutions. We have offices in at least 24 major cities in China. ShineWing is the leading professional services provider in Asia Pacific.
4. Praxity Global Alliance
ShineWing is a member of Praxity, which has participating firms in over 100 countries operating out of over 690 offices globally. We work closely with Praxity to provide comprehensive international M&A advisory services. We can cater to the needs of clients at different stages, ranging from searching for M&A targets to providing due diligence and tax advisory services.
