plan

Implementation Standards

Preliminary preparation
Clear acquisition targets: Determine the energy companies or projects you want to acquire based on your own strategic planning, business needs and resource conditions. For example, a company focusing on solar power generation hopes to expand its business to the oil field, so it can look for target companies with advantages in oil exploration and mining.
Form a professional team: including experienced lawyers, accountants, financial advisors, industry experts, etc. Lawyers are responsible for reviewing legal documents, assessing legal risks, etc.; accountants conduct financial due diligence; financial advisors assist in formulating acquisition strategies and financing plans; industry experts evaluate the technology and operations of the target company.
Conduct market and policy research: Understand the energy market conditions in the country where the target company is located, including market size, competitive landscape, development trends, etc. At the same time, conduct in-depth research on the country's energy policies, tax policies, foreign investment policies, etc. For example, some countries have restrictions on the proportion of foreign investment in the energy field, which needs to be known in advance.
Finding targets and initial contact
Finding potential targets: Obtain information about target companies through professional intermediaries, such as investment banks, M&A consultants, etc. You can also use industry exhibitions, seminars and other platforms to contact and communicate with potential target companies, or pay attention to relevant information on industry media and information platforms.
Initial contact and expression of intent: Conduct initial communication with the target company or its shareholders to express the intention to acquire, but do not disclose too much specific information to avoid causing unnecessary market fluctuations. If the other party is willing to cooperate, a confidentiality agreement can be signed to further understand the situation of the target company.
Due Diligence
Financial Due Diligence: Conduct a comprehensive review of the target company's financial status, including financial statements such as the balance sheet, income statement, and cash flow statement, verify its asset value, liabilities, profitability, cash flow status, etc., and also pay attention to whether there are risks such as undisclosed debts and contingent liabilities.
Legal Due Diligence: Review the target company's legal documents, such as company charters, contract agreements, licenses, intellectual property rights, etc., to ensure that its business activities are legal and compliant, and there are no potential risks such as legal disputes and litigation.
Technical and business due diligence: Industry experts conduct technical assessments of the target company's energy projects, including the technical feasibility of the project, equipment status, production capacity, etc. At the same time, understand its business operations, such as market share, customer groups, supply chain management, etc.
Negotiation and quotation
Determine the acquisition price and transaction structure: According to the results of due diligence, combined with the value of the target company and its own acquisition budget, determine a reasonable acquisition price and transaction structure, such as cash acquisition, equity swap or a combination of the two.
Conduct negotiations: Negotiate with the target company or its shareholders on key terms such as acquisition price, transaction conditions, payment method, delivery time, etc. The two parties may need to negotiate and compromise multiple times to reach a consensus.
Submit an offer: After the negotiation has made certain progress, submit a formal offer letter to the target company, clarifying the specific contents such as the acquisition price, transaction structure, financing arrangements, and delivery conditions. The offer letter should be legally binding.
Sign an agreement and approval
Sign an acquisition agreement: After the two parties reach an agreement on all terms, sign a formal acquisition agreement to clarify the rights and obligations of both parties, the specific content and conditions of the transaction, etc.
Obtain approval: According to the laws, regulations and regulatory requirements of the country where the target company is located, it may be necessary to obtain antitrust approval from the local government and approval from the industry regulatory authorities. The acquirer needs to prepare relevant materials and actively cooperate with the approval process.
Financing and Delivery
Financing arrangements: According to the acquisition price and transaction structure, implement financing channels, such as self-owned funds, bank loans, bond issuance, equity financing, etc., to ensure that there are sufficient funds to complete the acquisition.
Delivery and transfer: After all delivery conditions are met, in accordance with the prov