Frequency/market practice: Very common in offshore acquisitions or onshore acquisitions of FIEs, but not very common in onshore acquisitions of domestic companies mainly due to restrictions under PRC foreign exchange control rules.
Frequency/market practice: Cash-free/debt-free is very common. Working capital is also fairly common. Net asset value is rarely seen.
Frequency/market practice: Collars are rarely used. This may be required where public companies are involved.
Frequency/market practice: This is usually prepared by the target company.
Frequency/market practice: Fairly common and more common in private equity transactions where sellers continue to manage the target company after closing. It is less common where the seller is completely exiting. Earn-outs are commonly capped. There are potential difficulties in implementing earn-out provisions in onshore acquisitions given the requirement for foreign investors to pay the purchase price in full within one year under the M&A Regulation, as well as restrictions under PRC foreign exchange control rules.
Frequency/market practice: Rarely. Due to restrictions under PRC foreign exchange control rules, cross border deposit payments are difficult to implement in practice.