Overview
The M&A Loan is provided by ABC to domestic enterprises, that acquire target enterprises established and in continuous operation through accepting transfer of existing shares, purchasing new shares or taking over assets or debts. M&A loans help acquiring enterprises with tight funds to extend their industry chain by acquiring or merging downstream and upstream businesses, or to expand the size, increase market share and improve reputation by acquiring or merging similar businesses.
The investment banking team is mainly responsible for: conducting due diligence jointly with the M&A loan sponsors; analyzing and evaluating risk factors involved in M&A; giving a professional opinion on M&A; and providing a reference for loan sponsors and approval departments to make better decisions.
Features
1. The amount of M&A loan is up to 50% of M&A consideration;
2. The loan term is up to five years;
3. Acquirers are incorporated in China, and target enterprises may be incorporated anywhere;
4. Acquirers and target enterprises should be of industrial or strategic relevance; and
5. Valid and full collateralization is required.
Services
1. Provide strong financial support to acquirers.
2. Provide professional financial advisory services for acquirers; provide deal structure and financing solution design services in line with the characteristics of M&A deals and financial position of acquirers; assist acquirers in going through approval and settlement formalities. If acquirers have not identified target enterprises, ABC may provide total-process M&A financial advisory services, in accordance with the acquirers’ business characteristics and M&A needs.
Strengths
Strong capital base, good social reputation and broad brand awareness: As one of the four state-owned commercial banks in China, ABC has a strong capital base, in-depth understanding of the national conditions and policies, market environment and enterprise practices due to our long involvement in the Chinese market, and possesses a good social reputation as well as broad international awareness.
Professional team. ABC has a professional M&A team with expertise in due diligence, planning, commercial negotiation and transaction processing, providing an assurance for success. ABC maintains a strategic partnership with many investment banks, trusts, law firms, accounting firms, appraisal firms and public relations firms. We work together to provide the best M&A services for customers.
Strong customer base. ABC maintains close relations with nearly 400,000 corporate customers across the country; maintains a broad base of quality customers and project resources covering a wide range of industries; and promotes continuous increase of corporate value through value discovery and creation.
A full range of financial services and products. ABC can provide structured financial arrangements and financial service packages for enterprises conducting M&A activities by using M&A loans, trust financing and private placement in accordance with national laws and regulations and ABC policies.
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