What post-deal integration action should an investor carry on?
Immediately following the due diligence reviews which identify notable issues, foreign investors should develop a long-term tax and regulatory strategy for their investment to optimize the group's China tax position - this is vital for a successful acquisition in China. Failure to align the tax strategy with the business strategy can delay successful integration and result in missed opportunities for optimizing the group's tax position. Post-deal integration focuses on the medium- to long-term strategic consequences of the acquired target, and includes:
- post-deal tax planning and structuring;
- employment policy and recruitment strategy;
- refinancing strategy;
- cost relocation and reduction;
- disposal planning for carve out/divestments; and
- transfer pricing strategy