What are the benefits and risks a company takes by merging or acquiring an existing foreign company rather than establishing a “Greenfield” entity abroad?

(a): Mergers and acquisitions offer the benefits of immediate market penetration, existing knowledge of the local market, and less potential risk relative to starting a new entity. However, cross-borders M&As are generally subject to a host of review processes by the local government, and local laws may impede M&A, as is the case within many Chinese industries.

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