Our client is a UK based Private Equity firm with a focus on high growth sectors in Asia. Our client had plan to acquire the marketing & design department from a US PR company based in Shanghai.
There were 16 graphic designers in the marketing design department who were based in Shanghai. While the client was finishing the Due diligence, we setup a new WFOE design company (fully operational) to be the future platform of the new division.
Once the M&A deal is had been completed, we prepared a employee transfer agreement for each employee designer to sign under the newly formed WFOE, with all employee rights and benefits remaining unchanged. We suggested that the client to offer a sign on bonus, resulting a 90% retention rate.
We created a Standard Operating Procedure (SOP) for the finance function and a Employee Handbook for the new company to enhance internal control.
We prepared the official company letter to be sent to all business partners of the marketing design team informing them of the change in the company structure.
We prepared new commercial contracts for all existing clients under the new company. We transferred-in all current account receivables to ensure new company’s tax liability stays the same.