This month’s “Our view” focuses on various issues around letters of intent (LOIs) from a China M&A perspective, particularly in light of a new wave of family-owned, mid-cap entities (which often have little experience with LOIs) we’re currently seeing looking to enter China.
Specifically, we highlight how the LOI – as a critical element in any pre-deal M&A – can be enhanced when certain locale-specific issues are taken on board.
Key points of interest include:
- the potential for opposing Chinese and Western expectations in arriving at deal price
- use of ‘rapid assessment’ due diligence as a pre-deal, pre-LOI initiative
- pivotal points that should be factored in to try to maximize effectiveness of LOIs.