Part One
Case Summary
Case Summary
In 2004, we were retained to provide our whole-procedure legal service to a foreign company in its acquisition of a paper mill in North China.
The Target company is a leading company in Chinese market. The total amount of investment involved in this case exceeds USD 20,000,000.
Case Summary
The services we have rendered in this case included:
legal due diligence, design of the transaction scheme, coordination and negotiation, and preparation for legal documents.
Part Two
General Procedure of Acquisition
General Procedure of Acquisition
勏 Information Disclosure
勏 Preliminary Research
勏 Project Evaluation
General Procedure of Acquisition
勏 Due Diligence
勏 Asset Appraisal
勏 Acquisition Agreement
General Procedure of Acquisition
勏 Articles of Association
勏 Administrative Approval
勏 Industry and Commerce Registration
勏 Payment of Consideration
Part Three
Legal Due Diligence
Concept of Legal Due Diligence
劔 Investigation on the legal status of the target company
劔 Evaluation of the existent and potential legal risks in the acquisition
劔 Comment and Suggestion on the feasibility of the transaction
Procedure of Legal Due Diligence
勏 confidential agreement
勏 questionnaires
勏 interview with the relevant persons of the target company
勏 investigation in governing authorities
Procedure of Legal Due Diligence
勏 examination of the documents, materials and information collected in the interview and investigation
勏 further interview and investigation (if necessary)
勏 due diligence report
Key Points of Legal Due Diligence
刓 Basic Information
刓 History Evolution
刓 Ownership and Organization
刓 Personnel
Key Points of Legal Due Diligence
刓 Operations (licences, approvals...)
刓 Finance
刓 Assets
刓 Contractual Obligations
刓 Legal Proceedings
Case Analysis
Background of the Target Company
- private company
- advanced technology and facilities
- actually controlled by a ¨group company〃
Case Analysis
the work we did during the investigation
- issued questionnaires to the management of the Target and the management of the ¨Group Company〃;
- conducted the interviews with the officials of the Target and the ¨Group Company〃;
Case Analysis
the work we did during the investigation
- conducted the investigation in the local governing authorities, including the Administration for Industry and Commerce, Environment Protection Bureau, Labor and Social Security Bureau, Land Resources Bureau, the House Property Bureau and other related authorities
Case Analysis
the problems we focused on
A. the Connection between the Target and the ¨Group Company〃
Case Analysis
I. Most of the Targetˇs major shareholders are also the shareholders of the ¨Group Company〃; all the Targetˇs directors are directors of the ¨Group Company〃;
Case Analysis
II. When establishing the Target, its shareholders, to fulfill the contribution, have taken the assets which should legally belong to the ¨Group Company〃;
Case Analysis
III. The ownership of the land used by the Target is owned by the Target while the buildings was built by the ¨Group Company〃
Case Analysis
IV. The production equipment of the Target are purchased by the ¨Group Company〃 and provided to the Target;
Case Analysis
V. The raw materials used by the Target is imported by the ¨Group Company〃;
Case Analysis
VI. Part of the electric power used by the Target is supplied by the electricity company controlled by the ¨Group Company〃;
Case Analysis
VII. The Target is using the trademark belonging to the ¨Group Company〃;
Case Analysis
VIII. The local tax intended to be borne by the Target is paid by the ¨Group Company〃;
Case Analysis
IX. Both parties have no written documents evidencing that the Target has owed a huge amount of debt to the ¨Group Company〃.
Case Analysis
X. There is a mixture of the assets, funds and expenses between the ¨Group Company〃 and the Target.
Case Analysis
the problems we focused on
B. the Confirmation of the Targetˇs Property
Case Analysis
a. Land
b. Buildings
c. Material equipments
Case Analysis
the problems we focused on
C. Environment Protection
Case Analysis
The Target does get underground water in its production while not obtaining the Permit for Taking Groundwater.
A project of the Target has not obtained the approval from the local Environment Protection Bureau.
Case Analysis
the problems we focused on
D. Labor and Social Security
Case Analysis
a. The Target has not paid social security fee complying with the laws and regulations of the state.
b. The employees of the Target should be lawfully settled, and the labor relationship with some key persons of the Target shall be well kept.
Case Analysis
Our suggestion on the arrangement of the transaction
WFOE or JV ?
Equity Purchase or Asset Purchase?
Case Analysis
WFOE or JV
In a WFOE, the foreign investor will have its exclusive decision-making power.
If case of JV, the domestic investorˇs commercial resources in the local area may help the development of the company.
N Please note: any restriction for WFOE?
Case Analysis
Equity or Asset
Equity purchase is generally the simplest and quickest method to complete, and it will help the company to retain some special license or qualification.
In an asset acquisition, the acquirer may acquire select assets and liabilities of the target. There, consequently, is an opportunity to carve out unwanted assets and liabilities, and avoid some legal risks.
Case Analysis
Solution:
勏 Set up a WFOE in China;
勏 Purchase the assests of the Target;
勏 Enter into non-competition agreement and long-term supply agreement with the ¨Group Company〃.
Thank You!
Thanks for your Trust and Support !
相关法律服务
杨春宝一级律师简介
杨春宝一级律师,大成上海高级合伙人、资本市场部主任、国资基金研究中心主任,大成中国区私募基金专业带头人、科技与文化法律研究中心联合牵头人。执业30余年,长期从事私募基金、投融资、并购重组法律服务,尤其对对赌研究颇深且具有非常丰富的实战经验,并专注于金融机构股权投资业务。2004年起多次入选The Legal 500"私募基金"和"公司与商业"等境内外各类律师榜单,代理的中国法院首例适用外国法律审理外国公司的董事损害小股东权益纠纷案入选上海高院发布的《上海法院域外法查明典型案例》和威科先行"要案头条"。入选上海涉外法律人才库、上海市司法局鼎新法治人才库、上海国有企业改制法律顾问团,具有上市公司独立董事任职资格,系多家知名高校的兼职教授或兼职研究生导师及上海市商务委跨国经营人才培训班讲师。出版《私募股权投资基金风险防控操作实务》等16本投融资法律专著。了解更多常见法律问题
外资并购中法律尽职调查应关注哪些要点?
法律尽职调查是收购方对目标公司法律状态进行全面调查、评估现存与潜在法律风险并判断交易可行性的专业活动,其核心价值在于为交易结构设计和风险定价提供依据。调查通常从签署保密协议开始,通过问卷、访谈和目标公司管理层沟通,并向工商、环保、劳动社保、国土资源、房产管理等主管部门核实信息,最终形成尽职调查报告。核查要点应覆盖目标公司基本信息、历史沿革、股权与组织架构、人员状况、运营资质与审批、财务状况、资产权属、合同义务及诉讼纠纷等维度,尤其要关注关联交易、资产混同、权属瑕疵、环保合规与劳动用工等高风险领域。结合本案,律师重点核查了目标公司与集团公司在股权、资产、资金、商标、税务、债务等方面的混同情况,以及土地、房产、设备等财产权属、地下水取水许可与环评审批缺失、社保欠缴与员工安置等问题。实务中,收购方应将尽职调查发现的风险转化为交易文件中的陈述保证、交割条件、价款调整与赔偿机制,对无法整改的瑕疵应设计剥离或切割方案,避免收购后承担历史遗留责任。
目标公司与关联集团公司混同会带来哪些风险?
关联公司混同是指目标公司与关联企业在股权、人员、资产、资金、业务、财务等方面界限不清,可能导致法人独立人格被否认、债务牵连、资产权属争议及税务合规风险。在本案中,目标公司多数股东同时是集团公司股东,全部董事均为集团公司董事;设立时股东以本应属于集团公司的资产出资;目标公司使用的土地归目标公司所有,但地上建筑物由集团公司建造;生产设备由集团公司购买后提供给目标公司使用;原材料由集团公司进口;部分电力由集团公司控制的电力公司供应;目标公司使用集团公司商标;目标公司应负担的税款由集团公司缴纳;双方无书面文件证明目标公司对集团公司负有巨额债务;集团公司与目标公司之间存在资产、资金和费用的混同。这些事实表明目标公司独立性严重不足,收购后可能面临权属争议、债务追索和税务风险。实务中,收购方应要求转让方对关联交易和资产混同进行彻底清理,通过资产剥离、债务豁免或重组明确权属,并在交易文件中设置陈述保证与赔偿条款,必要时取得关联方书面确认或豁免,以切割历史风险。
外资收购境内企业应选择股权收购还是资产收购?
股权收购是收购方受让目标公司股东股权从而间接取得公司控制权的交易方式,通常程序最简单快捷,且有利于保留目标公司持有的特殊许可证或资质;资产收购则是收购方直接购买目标公司特定资产与负债,可以剥离不需要的资产和负债,从而规避部分历史法律风险。两种路径各有利弊,选择时需综合考量交易目的、资质保留、风险隔离、税务成本与审批难度。本案中,目标公司存在与集团公司的严重资产混同、财产权属不清、环保审批缺失、社保欠缴等多重风险,若采用股权收购,收购方将承继全部历史遗留责任;若采用资产收购,则可选择性地取得核心资产并切割历史负债。律师最终建议设立外商独资企业,购买目标公司资产,并与集团公司签订不竞争协议和长期供应协议,既实现了对核心资产的控制,又通过合同安排保障了原材料供应和竞争秩序。实务中,收购方应结合尽职调查结果评估风险敞口,对资质依赖强、历史风险可控的目标可优先考虑股权收购,对风险复杂、资产可分离的目标宜采用资产收购,并在交易文件中明确资产范围、负债承担与过渡期安排。
以上内容仅供参考,不构成法律意见。如需专业法律服务,请联系杨春宝一级律师:chambers.yang@dentons.cn




