A U.S. Exit Strategy

October 14, 2022 | BY

Susan Mok

As the relationship between the U.S. and China has deteriorated, an increasing number of Chinese companies are ending their U.S.-based operations. Derek Liu, Rod Hunter and Howard Wu of Baker McKenzie set out some guidance for those heading down that path

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Summary

  • In order to execute a smooth exit from U.S. operations, Chinese companies should retain a good U.S. financial adviser
  • Careful consideration should also be given to how the asset is packaged, preparing stand-alone audited financial statements, and optimizing the business for post-closing operations
  • Chinese companies should be prepared to use U.S. law and engage in longer negotiations as a result
  • CFIUS-related requirements and risks should be understood during the early stages of the deal