a) Cash payment
The buyer pays cash to obtain the control power of the newly established foreign invested enterprises. This is the most widely used M&A payment method in China nowadays and it’s also the simplest one.
b) Stock payment
The buyer pays its newly issued stocks to obtain the control power of the newly established foreign invested enterprises.
c) Mixed payment
The buyer not only pays cash and/or stocks to the target company, but also pays warrants and/or convertible bonds.
d) Affording liability as payment
The buyer pays nothing to the target company. Instead, it commits to take over all or part of the liabilities of the target company to obtain the control power. Although this method is seldom used in western countries, it’s widely used in China.
