With the cooperation of enterprises, the best adjustment is to conduct a comprehensive and in-depth review of the historical data and documents of enterprises, the background of managers, market risks, management risks, technical risks and capital risks, most of which occur in the public offering and listing of enterprises, enterprise acquisition and capital management.
The purpose of due diligence is to let buyers know as much as possible about the stocks or assets they want to buy. From the buyer's perspective, due diligence is risk management. For buyers and their financiers, M&A itself has various risks.
It is necessary for the buyer to make up for the imbalance of information acquisition between buyers and sellers through due diligence.
Extended data:
Due diligence usually goes through the following procedures:
The investment bank designated by the seller is responsible for the coordination and negotiation of the whole merger and acquisition process.
Potential buyers appoint a due diligence team composed of experts (usually including lawyers, accountants and financial analysts).
The potential buyer signs a "confidentiality agreement" with the expert consultant hired by the potential buyer and the seller.
Under the guidance of the seller, the seller or the target company will collect all relevant information and compile the data index.
Potential buyers prepare a due diligence list.
Designate a room (also called "data room" or "due diligence room") for storing relevant information.
Establish a program to give potential buyers the opportunity to ask other questions about the target company and obtain copies of documents that can be disclosed in the reference room.
References:
Baidu encyclopedia-due diligence