China Financial Due Diligence
MarcumAsia provides in-depth China financial due diligence services for both financial and strategic investors evaluating making an investment in assets based in the PRC.
We also assist clients to evaluate potential Chinese partners in the context of deals including acquisitions, asset sales, joint ventures, licensing agreements, and bankruptcy proceedings.
Given the substantial differences and maturity of the legal and business environment in China, standard due diligence protocols used in developed markets are almost guaranteed to fail when applied to Chinese businesses. (For an in-depth discussion of these issues see, “When U.S. Law Collides with Chinese Reality,” by Drew Bernstein.) As a result, even some highly experienced multi-national corporations and institutional investors have made painful and expensive mistakes when investing in China. Based on decades of experience, MarcumAsia has developed a range of traditional and non-traditional financial due diligence techniques that will help you understand the true operating results, financial condition, and ownership structure of Chinese entities and assets. Our professional team is able to apply a strong background in forensic accounting techniques along with deep knowledge of Chinese business practices and proprietary contacts in industry and government so our clients understand the truth behind the story.
Among the benefits of working with MarcumAsia are:
- Ascertain the true ownership status of critical assets, evaluate major transactions, and identify material relationships with local governments and financial entities.
- Verify scale of operations and cash flows while sorting through multiple, sometimes conflicting sets of accounting and tax records.
- Determine if an entity is auditable, identify critical tax issues, and evaluate risks related to FCPA compliance.
MarcumAsia can also serve as a resource to companies, creditors, and bankruptcy courts seeking to evaluate the credibility of an acquisition offer by a Chinese entity, including verifying the scale of the business, source of funds, and evaluating regulatory obstacles.
To effectively bridge the cross-border divide of U.S.-China transactions, you need a firm equally fluent in regulatory requirements and Chinese business realities. That firm is MarcumAsia.