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Lack of transparency in the entire market, difficult to get access to potential target's information |
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Culture difference exists. If not using the appropriate language, the deal may be killed from the very beginning |
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The target's financial information is not sufficient to work-out the financial model or business valuation |
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The accounting principle used by the target is much different from IAS/US GAAP |
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Target uses two set of books, one for management reporting, one for tax reporting
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Need to take over a huge labor force from the target |
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The statutory valuation for state-owned companies may generates very different results from business valuation |
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Target is overall lack of awareness of environmental, health and safety issues |
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The transfer pricing between the target and its related parties is a mess |
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The regulatory requirement in certain restricted industries is complex |
The list goes on.
