Fraud Investigation and Practical Solutions in the Acquisition Process

Gasgoo.com: Mergers and Acquisitions (M&A in China) is not simply win-win for owners and companies. It's also about win-win or win-lose for local governments. For example, small manufacturers provide jobs, taxes and gifts to local officials. If a larger manufacturer acquires a small one, jobs will move along with it. This is the main reason the industry is so spread out. No one wants to let go of jobs in their district. So what's your opinion on dealing with the local government in an M&A case?

Mr. Schaub: I think 95% of the projects, you know, the approval of authorities would be provincial or local governments. It's the first thing to remember. I think many foreign companies fail to properly engage with the local government. So it is very important before the projects to tell the governments why the project is happening, who you are, what you are doing. And you know, of course here in Shanghai, the local government doesn't care so much except for the very