1. what isCommercial due diligence consulting

Commercial due diligence consulting (BusinessDueDiligenceConsulting, referred to as BDDC) is a professional consulting service designed to help clients fully, deeply and objectively understand the business situation, value, risk and potential of the target audience before making major business decisions or transactions. The object of business due diligence consulting can be an enterprise, a project, a market, a brand, a product, a channel, a partner, etc., involving various industries and fields. Business due diligence consulting scenarios can be mergers and acquisitions, investment, cooperation, expansion, exit, transformation, innovation, etc., involving a variety of business activities and purposes.

The core of business due diligence consulting is to conduct a comprehensive business analysis of the target audience, including but not limited to the following aspects:

Business model analysis: analyze the business logic, income sources, cost structure, profit level, cash flow status, etc. of the target object, and evaluate the business feasibility, sustainability and development potential of the target object.

Market environment analysis: analyze the market size, growth rate, structure, trend, competitiveness, opportunities and threats of the target object, and evaluate the market position, market share, market potential and market risk of the target object.

Customer demand analysis: analyze the target customer base, customer profile, customer demand, customer satisfaction, customer loyalty, customer conversion rate, etc. of the target object, and evaluate the customer value, customer relationship, customer maintenance and customer development of the target object.

Product and service analysis: analyze the characteristics, advantages, disadvantages, innovation, differentiation, life cycle, etc. of the products or services of the target object, and evaluate the quality, performance, function, price, brand, reputation, etc. of the products or services of the target object.

Operation management analysis: analyze the operation process, operation efficiency, operation quality, operation risk, etc. of the target object, and evaluate the operation ability, operation level, operation optimization and operation improvement of the target object.

Organizational manpower analysis: analyze the organizational structure, organizational culture, organizational climate, organizational change, etc. of the target object, and evaluate the organizational effectiveness, organizational stability, organizational adaptability and organizational development of the target object.

Financial legal analysis: analysis of the target object's financial statements, financial indicators, financial health, financial risk, etc., to assess the target object's financial position, financial value, financial forecast and financial adjustment. At the same time, analyze the legal compliance, legal liability, legal disputes, legal risks, etc. of the target object, and assess the legal status, legal impact, legal advice and legal protection of the target object.

The result of a business due diligence consultation is a detailed business due diligence report, which typically includes the following sections:

Overview: Introduce the basic information of the target object, such as name, address, scale, history, business scope, etc., as well as the purpose, scope, method, time, etc. of commercial due diligence.

Analysis: According to the above aspects, conduct in-depth business analysis of the target object, display data, charts, cases, etc., and reveal the business situation, value, risk and potential of the target object.

Evaluation: The results of the comprehensive analysis, a comprehensive business assessment of the target object, giving the target object's business rating, business value, business risks and business opportunities.

Suggestions: Based on the results of the assessment, make targeted business recommendations to the client, such as whether to trade, how to trade, how to optimize the transaction, how to implement the transaction, etc., and how to improve the target's business capabilities, business level, and business effects.

Appendix: Provide relevant information, evidence, references, etc. of commercial due diligence to support the analysis, evaluation and recommendations of commercial due diligence.

The process of commercial due diligence consulting generally includes the following steps:

Determine the needs: communicate with customers, understand the customer's business purpose, business background, business problems, etc., clarify the object, scope, requirements, time limit, etc. of commercial due diligence, and formulate plans, plans, contracts, etc. of commercial due diligence.

Collect information: collect relevant information about the target object, such as business data, business reports, business cases, etc., as well as the market environment, competitive situation, industry trends, etc. of the target object through various channels and methods, such as network, literature, database, interview, survey, observation, etc.

Analysis of information: through various tools and methods, such as statistics, modeling, evaluation, comparison, induction, deduction, etc., the collected information is systematically collated, analyzed, explained, verified, etc., to extract the business characteristics, business problems, business advantages, business disadvantages, etc. of the target object, as well as the business status, value, risk and potential of the target object.

Evaluation information: Based on the results of the analysis, a comprehensive business assessment of the target object is conducted, giving the target object's business rating, business value, business risks and business opportunities, as well as the target object's business match with the customer, business synergy, business complementarity, etc.

Suggestion information: based on the results of the assessment, make targeted business recommendations to the client, such as whether to trade, how to trade, how to optimize the transaction, how to implement the transaction, and how to improve the business capabilities, business level, and business effectiveness of the target.

Report writing: Based on the information collected, analyzed, evaluated and recommended, a detailed commercial due diligence report is written, showing the process, results and results of commercial due diligence according to the above report structure.Conclusion, etc., as well as the basis, evidence and reference of commercial due diligence.

Submit report: submit the commercial due diligence report to the customer, communicate and communicate with the customer, explain and explain the content and significance of the report, answer and solve the customer's questions and problems, obtain the customer's feedback and evaluation, according to the customer's needs and opinions, modify and improve the report, etc.

2. CommercialDue diligence consultationthe purpose and significance

The purpose and significance of commercial due diligence consulting mainly has the following three aspects:

Provide customers with effective information support and decision-making basis: commercial due diligence consulting can help customers to comprehensively, deeply and objectively understand the business situation, value, risk and potential of the target object before making major business decisions or transactions, so as to provide customers with effective information support and decision-making basis, and help customers make correct business judgments and choices. For example, if a customer wants to invest in a project, business due diligence consulting can help the customer analyze the business model, market environment, customer needs, product services, operation management, organizational manpower, financial laws and other aspects of the project, so as to provide the customer with information such as the business value, business risks and business opportunities of the project, and help the customer judge whether the project is worth investing and how to invest.

Avoid or reduce potential business risks for customers and protect customers' interests and rights: Commercial due diligence consulting can help customers discover and identify potential business risks of target objects before making major business decisions or transactions, so as to avoid or reduce these risks for customers and protect customers' interests and rights. For example, if a customer wants to acquire an enterprise, commercial due diligence consulting can help the customer analyze the financial situation, legal situation, market situation, operation situation and other aspects of the enterprise, so as to find out whether the enterprise has risks such as financial fraud, legal disputes, market competition and operation problems, help the customer avoid or reduce these risks, and how to carry out risk control and risk compensation.

Discover or create business opportunities for customers to enhance their competitive advantage and profitability: Business due diligence consulting can help customers discover or create business opportunities for target objects before making major business decisions or transactions, thereby enhancing their customers' competitive advantage and profitability. For example, if a customer wants to cooperate with a brand, business due diligence consultation can help the customer analyze the product characteristics, brand image, market positioning, customer base and other aspects of the brand, so as to find business opportunities for the customer, such as product innovation, brand alliance, market expansion, customer interaction and so on, and help the customer take advantage of these opportunities to enhance the customer's product strength, brand strength, market strength, customer strength and so on.

3. CommercialDue diligence consultationThe case

In order to better illustrate the purpose and significance of commercial due diligence consulting, the following are some cases of commercial due diligence consulting. These cases are actual cases of commercial due diligence consulting services provided by Shangpu Consulting Company to its service clients, for reference only.

Case 1: An international hotel group wants to acquire a domestic hotel brand to expand its influence and share in the Chinese market. Shangpu Consulting Company provided commercial due diligence consulting services for the international hotel group, and conducted a comprehensive commercial analysis and evaluation of the domestic hotel brand, including the number of hotels, hotel distribution, hotel type, hotel quality, hotel revenue, hotel cost, Hotel risk, etc., as well as its market environment, competitive situation, customer demand, development trend, etc. Champu Consulting provided the international hotel group with information on the business value, business risks and business opportunities of the domestic hotel brand, as well as advice on how to make acquisitions, how to optimize acquisitions, and how to implement acquisitions. According to the business due diligence report of Shangpu Consulting, the international hotel group successfully acquired the domestic hotel brand and achieved good performance and reputation in the Chinese market.

Case 2: A domestic e-commerce platform wants to invest in a foreign e-commerce platform to expand its business and influence in overseas markets. Shangpu Consulting Company provided commercial due diligence consulting services for the domestic e-commerce platform, and conducted in-depth business analysis and evaluation of the foreign e-commerce platform, including its e-commerce model, e-commerce scale, e-commerce growth, e-commerce profit, e-commerce risk, etc., as well as its market environment, competitive situation, customer demand, development trend, etc. Shangpu Consulting provided the domestic e-commerce platform with information on the business value, business risks and business opportunities of the foreign e-commerce platform, as well as suggestions on how to invest and how to implement the investment. According to the business due diligence report of Shangpu Consulting, the domestic e-commerce platform has successfully invested in the foreign e-commerce platform and achieved good performance and reputation in overseas markets.

Case 3: A domestic food company wants to cooperate with a foreign food brand to enhance its product and brand power in the domestic market. Shangpu Consulting Company provided commercial due diligence consulting services for the domestic food enterprises, and conducted accurate commercial analysis and evaluation of the foreign food brands, including their product characteristics, brand image, market positioning, customer base, etc., as well as their market environment, competitive situation, customer demand, development trend, etc. Shangpu Consulting Company provided the domestic food enterprises with information on the commercial value, commercial risks and business opportunities of the foreign food brands, as well as suggestions on how to cooperate, how to optimize cooperation and how to implement cooperation. The domestic food enterprise successfully cooperated with the foreign food brand according to the business due diligence report of Shangpu Consulting Company, and achieved good product strength and brand strength in the domestic market.

How 4. choose and use businessDue diligence consultationService

Commercial due diligence consulting service is a kind of professional consulting service, which requires certain professional knowledge, professional skills, professional experience and professional resources. Therefore, when selecting and using commercial due diligence consulting service, the following aspects should be paid attention:

Choose a professional business due diligence consulting firm: Business due diligence consulting firm is the main body providing business due diligence consulting services, its professional level, professional quality, professional reputation, etc. directly affect the effectiveness and value of business due diligence consulting services. Therefore, when selecting a commercial due diligence consulting firm, it is necessary to examine its professional background, professional team, professional methods, professional cases, professional evaluations, etc., as well as its professional matching, professional collaboration and professional complementarity with the client, and select the most suitable commercial due diligence consulting firm for the client.

Clarify the needs and objectives of commercial due diligence consulting: the needs and objectives of commercial due diligence consulting are the starting point and destination of commercial due diligence consulting services, which determine the object, scope, requirements and duration of commercial due diligence consulting, as well as the effect and value of commercial due diligence consulting. Therefore, when clarifying the needs and objectives of business due diligence consulting, it is necessary to analyze the customer's business purpose, business background, business problems, etc., determine the business situation, value, risk and potential of the target object that the customer wants to know, as well as the business information, business evaluation and business advice that the customer wants to obtain, and formulate plans, plans, contracts, etc. for business due diligence consulting.

Actively cooperate with the process and results of commercial due diligence consulting: the process and results of commercial due diligence consulting are the core and key of commercial due diligence consulting services, reflecting the professional level, professional quality, professional reputation, etc. of commercial due diligence consulting, as well as the professional needs, professional objectives, professional interests of customers. Therefore, when actively cooperating with the process and results of commercial due diligence consulting, it is necessary to maintain good communication and communication with commercial due diligence consulting companies, provide necessary information and support, timely feedback and evaluation, and make business decisions and business actions according to the results of commercial due diligence consulting.

Conclusion

Commercial due diligence consulting is a professional consulting service designed to help clients gain a comprehensive, in-depth and objective understanding of the business situation, value, risk and potential of the target audience before making major business decisions or transactions. The purpose and significance of business due diligence consulting are: first, to provide customers with effective information support and decision-making basis to help customers make correct business judgments and choices; second, to avoid or reduce potential business risks for customers and protect their interests and rights; third, to discover or create business opportunities for customers to enhance their competitive advantage and profitability. From the definition, content, method and case of commercial due diligence consulting, this paper introduces in detail the purpose and significance of commercial due diligence consulting, and how to select and use commercial due diligence consulting services, hoping to help and inspire customers.