Private investors must closely watch targets

To mitigate post-acquisition risks, private companies need to consistently stay attentive to the target company, be cautious when selecting assets, and keep a close eye on the market, say counsel.

The State Council issued an Opinion on September 6 that lifts regulatory restrictions on trans-regional M&A activities in certain industries. In addition to offering preferential policies to encourage participation from private investors, the new regulations allow local governments to negotiate agreements on allocating revenue.