Gone are the days when foreign companies wishing to invest in China were limited to greenfield investments. They may now purchase operating Chinese businesses and may restructure their existing investments in China through mergers, spin-offs, and holding companies that were impossible only a few years ago. These developments are not confined to foreign investors. Domestic Chinese companies are also merging and acquiring one another, and the more successful among them have begun to buy out foreign investors. The result of all of these developments is a rapidly expanding mergers-and-acquisitions (M&A) market in China.

Small public companies face unique challenges when trying to secure additional capital to fuel growth or address unexpected operating costs. They have outgrown many of the financing options available to start-up enterprises, and require more significant capital contributions—and sometimes guidance—when it comes to achieving the best debt and capital structure for the company. 

Luckily, financing options formerly only open to larger public companies are now becoming available to a wider array of small and micro capitalization public borrowers. With an increased number of options, small and micro-cap public companies need to evaluate which of these options is the right fit for their particular needs and goals.