Investment bank, asset restructuring business and IPO business all need due diligence and enterprise valuation. Due diligence is to better understand the operation, assets, risks, products and management system of an enterprise. The purpose of enterprise valuation is to measure the value of this investment enterprise, and valuation is also a comprehensive index reflecting the value of the enterprise. Generally speaking, the valuation adopted is mainly the return on green assets, P/E ratio and P/B ratio.

Brief introduction to the above problems

For private equity funds, the so-called PE is to invest in the equity of unlisted companies and withdraw by accompanying them to grow or go public. The cycle is as short as 3 years and as long as 5 to 7 years. Moreover, the long investment cycle means that more human and financial resources are invested. From becoming a shareholder to finally quitting, PE, like a student who is about to take the college entrance examination, takes care of his diet and hires a tutor.

Due to the long investment cycle and high trial and error cost of private equity investment, private equity investment institutions must first go through various due diligence before deciding whether to invest in the target. A round of comprehensive due diligence mainly includes business adjustment, financial adjustment and legal adjustment.