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Heading East? Set the Clocks Back: Dealmakers understand that execution takes longer in China, although many still underestimate the amount of time it takes to close a transaction.

Article Excerpt
Byline: Jason D. Ramey

For over two decades, multinational companies have been heavily investing in China. Today, there are a significant number of small to middle market companies that are either considering expansion or they have new plans for entering the Chinese market through acquisition. Prior to entering China, there is usually a general understanding that it always takes time for government approval to be able to acquire a mainland enterprise. But for the new entrants into the Chinese market, often there is a misconception of the amount of time it really takes to close a deal. While it is important to set an overall timeline for investing in China and for closing the deal, it may be even more important to understand that the timeline may not be met. The following describes some common time-consuming matters that management of US companies may not fully appreciate when initially investing in China.

Performing due diligence in the US is very different...

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