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ARTICLE · 06 SEPTEMBER 2010

China M&A: Assembling an Effective Team for a China Transaction Part III

Many West European and US companies have thinned out their ranks of middle management in the never-ending pursuit of shareholder value. A China project is likely to be more time intensive and involved (and therefore expensive) than the foreign company initially forecasts. For this reason many foreign investors in China face difficulties in assembling a successful business project team to implement the project. Part I discusses the assembling of an effective in-house team.

ChinaCorporate/Commercial Law

Most companies engaging in a China project will likely need support from external consultants. This final section highlights the remaining members of the China deal team, including translators, accountants, and outside counsel.

Translators

"Mr. Zhang, you are a crook. You have misappropriated Joint Venture funds. I demand that you return the funds immediately." — Irate China Investor

Translation by China interpreter (Translation as follows: Esteemed Mr. Zhang: Our foreign guest is unclear of Chinese accounting practices. He understands that there may have been certain inter-company loans between your esteemed company and the Joint Venture. Our foreign guest would appreciate if your esteemed company would at its earliest convenience return such funds to the Joint Venture.)

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