April 2012

IPO a Foreign Enterprise in China; Michael Sylvester

ipo.jpgCompanies IPO for one of two reasons, fund raising or as an exit strategy and sometimes it is a combination of both.

Well, a few years ago it became possible for foreigners to take advantage of the Chinese IPO market for their foreign holdings here in China too.

And given the multiples in China in the 30-35 range, when compared to 7-10 or so in the West, even after all the taxes are paid, a company can do very well here.

 And with the ability to export profits, have any taxes paid in China be deducted from your home  country (due to the Double Tax Avoidance Treaties in place here now) there are fewer and fewer  reasons not to seriously consider using your existing company as a source of expansion capital.

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China: If it seems too hard, maybe you are doing it wrong... Michael Sylvester

 driver.pngFatiuge is a real thing.  Jet lag happens.  A few bad events  all happening in the same day can make you wonder why  you got out of bed at all...

 And this can be a challening environment, even on a good  day things are still going to go wrong sometimes.  

 So, we often find ourselves reminding people that if what  you are trying to do seems too hard, maybe you are doing  it wrong.  Not that your goal is inappropriate, but how you  are trying to get there might be based on something other  than what works here.

 The modernization occurring here has no meaningful Westernization component.  So, if part of  your long term strategy has been to wait until China has "developed enough" to start to do  things your way -- you might as well just pack up and go home.  Really.

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