Mainly to find out the business performance of the enterprise and determine the authenticity of its income and profit data. Understand its cost, expenditure and income.

Determine the liabilities and assets owned by the enterprise, including whether the enterprise has invisible liabilities and whether the asset rights and interests are complete, and also understand the standardization of enterprise financial management and the effectiveness of internal control, so as to determine the financial risk and tax risk of the enterprise. What investors are most worried about is financial fraud. If the third division decides that the non-profit fraud is 5 million, according to the utilization rate of ten times, then our valuation will increase by 50 million, of which the profit is very high;

Legal due diligence

It is used to know whether the enterprise has legal problems left over from history, and to determine whether the enterprise has the necessary qualifications and licenses to complete related businesses in the industry. Understand the integrity of the assets and legal rights owned by the enterprise. Determine whether the senior management personnel and core personnel of the enterprise meet the qualification requirements, and whether there are labor disputes in the labor relations of the enterprise. And master the existing and possible legal litigation and arbitration of the enterprise, determine the management mode of the shareholders' meeting, the board of directors and the board of supervisors, the structure of the three-level meeting and corporate governance.

Business due diligence

The purpose is to understand the real main business of the enterprise. As well as the proportion of various products and services and the content of products and services. And deeply familiar with the business model of the enterprise and related business processes such as procurement, R&D, production, sales and after-sales.

Used to determine whether the qualifications and licenses required by the enterprise business are complete, the market scale and development prospect of the industry in which the enterprise is located. And grasp the competition situation of the industry, such as which competitors are included and the differences between their strengths and weaknesses, and grasp the barriers to entry of the industrial chain in the industry where the enterprise is located and the influence of relevant industry policies. Understand and analyze the technology and R&D advantages of the enterprise, and make clear the future business development plan of the enterprise.

Due diligence process

Due diligence needs to find and collect all detailed information related to corporate finance and legal business, and make statistics and analysis. At the same time, it is necessary to personally go to the enterprise for on-site investigation and interview the senior management, shareholders and core technicians of the enterprise. Ensure that the information obtained in due diligence is true, complete and effective. After a week or two of detailed investigation.

Investigators need to draft and complete a due diligence report, detailing the overall situation of the enterprise. And point out the related risks and problems existing in the enterprise. Understand the basic situation of all aspects of the enterprise, and further compare, verify and verify the obtained information and materials. Ensure that the industry puts forward effective rectification suggestions and professional opinions, and at the same time assist enterprises to optimize rectification and make enterprises operate more standardized.