M&A in China

In China, M&A volume totaled $287 billion in the first nine months of 2014, but just $75 billion of that came from overseas firms. The popular perception among potential foreign acquirers is that it is difficult to gain a majority stake in a Chinese business. Would-be corporate investors also believe that regulatory procedures, high asking prices and cultural gaps are insurmountable obstacles. While conducting M&A in China is complex, with appropriate guidance, planning and due diligence, firms can close successful deals.

Pursuing M&A in China may require approval from up to six state entities, as well as from local...