CHINA
Law and Practice Contributed by: Wei Chen, Yue Zhang, Hao Peng and Yi Sun JunHe LLP
Contents 1. Market Trends p.66 1.1 Technology M&A Market p.66 1.2 Key Trends p.66 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company p.67 2.1 Establishing a New Company p.67 2.2 Type of Entity p.67 2.3 Early-Stage Financing p.67 2.4 Venture Capital p.67 2.5 Venture Capital Documentation p.67 2.6 Change of Corporate Form or Migration p.67 3. Initial Public Offering (IPO) as a Liquidity Event p.68 3.1 IPO v Sale p.68 3.2 Choice of Listing p.68 3.3 Impact of the Choice of Listing on Future M&A Transactions p.68 4. Sale as a Liquidity Event (Sale of a Privately Held Venture Capital- Financed Company) p.69 4.1 Liquidity Event: Sale Process p.69 5.1 Trends: Spin-Offs p.70 5.2 Tax Consequences p.70 5.3 Spin-Off Followed by a Business Combination p.71 5.4 Timing and Tax Authority Ruling p.71 6. Acquisitions of Public (Exchange-Listed) Technology Companies p.71 6.1 Stakebuilding p.71 6.2 Mandatory Offer p.72 6.3 Transaction Structures p.72 6.4 Consideration and Minimum Price p.72 6.5 Common Conditions for a Takeover Offer/Tender Offer p.73 6.6 Deal Documentation p.73 4.2 Liquidity Event: Transaction Structure p.69 4.3 Liquidity Event: Form of Consideration p.69 4.4 Liquidity Event: Certain Transaction Terms p.69 5. Spin-Offs p.70
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