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In order to control manufacturing cost, stabilize the supply of raw material and integrate the upstream and downstream business operation, a famous company manufacturing paint decided to acquire the equity right of a titanium mine company in western China. Mr. Yang and his team were engaged to conduct legal due diligence on the target company. After conducting on site investigation, it was found that the patent essential to the operation of the target company was registered in the name of another titanium mine company. Therefore, Mr. Yang proposed a condition precedent of the acquisition, which was agreed upon after multiple discussions. Nevertheless, the two parties fail to reach agreement regarding in what order the proposed acquisition shall be implemented and the exit strategy. The merger was therefore stalled.