1. clear businessDue diligence consultationPurpose and scope

The purpose and scope of commercial due diligence consulting are important factors that affect the efficiency and effectiveness of commercial due diligence consulting. Clarifying the purpose and scope of commercial due diligence consulting can help consulting firms and clients reach agreed expectations, avoid unnecessary duplication of work and information redundancy, and improve the pertinence and professionalism of commercial due diligence consulting.

The purpose of commercial due diligence consulting refers to the background, motivation, objectives and needs of the client in conducting commercial due diligence consulting. Different customers may have different business due diligence consulting purposes, for example, some customers may want to understand the market position and competitive advantage of the target enterprise, some customers may want to assess the financial situation and profitability of the target enterprise, some customers may want to explore the development potential and risk factors of the target enterprise, and so on. The consulting firm should fully communicate with the client before the commercial due diligence consultation to understand the client's purpose of the commercial due diligence consultation in order to determine the focus and focus of the commercial due diligence consultation.

The scope of commercial due diligence consulting refers to all aspects of the target enterprise involved in commercial due diligence consulting, such as market, competition, finance, law, technology, etc. Different commercial due diligence consulting purposes may require different scope of commercial due diligence consulting, for example, if the client's commercial due diligence consulting purpose is to assess the financial position and profitability of the target enterprise, then the scope of commercial due diligence consulting may primarily include the financial statements, financial indicators, financial risks, etc. of the target enterprise. The consulting firm shall, in consultation with the client, determine the scope of the commercial due diligence consultation in accordance with the client's commercial due diligence consultation purpose, so as to formulate the content and structure of the commercial due diligence consultation.

When providing business due diligence consulting services for an e-commerce platform, Shangpu Consulting takes full account of the purpose and scope of the client's business due diligence consulting. The e-commerce platform is an online platform focused on the trading of second-hand goods, with tens of millions of users and millions of goods. The commercial due diligence consultation for the e-commerce platform is aimed at seeking external investment to support its rapid development. After communicating with the e-commerce platform, Shangpu Consulting Company clarified the scope of business due diligence consulting, which mainly includes the following aspects:(1) market analysis, including market scale, market growth, market trend, market segmentation, market demand, etc.;(2) competition analysis, including competition pattern, competitors, competitive advantage, competitive strategy, etc.;(3) financial analysis, including financial statements, financial indicators, financial forecasts, financial risks, etc.;(4) legal analysis, including legal environment, legal compliance, legal risks, etc.;(5) technical analysis, including technical architecture, technical innovation, technical protection, technical risks, etc. By clarifying the purpose and scope of commercial due diligence consulting, Shangpu Consulting provided a comprehensive, in-depth and objective commercial due diligence consulting report for the e-commerce platform, which was highly recognized and appreciated by customers.

2. make reasonable businessDue diligence consultationSchemes and processes

The business due diligence consulting program and process refers to the plan, steps, methods and standards followed by the consulting company when conducting business due diligence consulting. The development of reasonable commercial due diligence consulting programs and processes can help consulting companies improve the efficiency and effectiveness of commercial due diligence consulting, and avoid delays, loopholes, errors and conflicts in commercial due diligence consulting.

Commercial due diligence consulting program refers to the detailed plan on the objectives, scope, content, structure, methods, tools, resources, time, cost, quality, risk, etc. of commercial due diligence consulting formulated by the consulting company before conducting commercial due diligence consulting. Commercial due diligence consulting programs should be tailored to meet the needs and expectations of the client, taking into account the client's purpose and scope of commercial due diligence consulting, as well as the consulting firm's commercial due diligence consulting experience and capabilities, while taking into account the interests and risks of the consulting firm. The commercial due diligence consultation plan should be fully communicated and confirmed with the customer before the commercial due diligence consultation starts to ensure the understanding and agreement of both parties.

Commercial due diligence consulting process refers to the steps, methods and standards of commercial due diligence consulting followed by consulting companies when conducting commercial due diligence consulting. The commercial due diligence consultation process should be flexibly adjusted and optimized according to the commercial due diligence consultation plan and the actual situation of the commercial due diligence consultation, so as to ensure the smooth progress and high-quality completion of the commercial due diligence consultation. The business due diligence consulting process generally includes the following steps:(1) the start of business due diligence consulting, including signing business due diligence consulting contracts with customers, establishing business due diligence consulting contacts with target enterprises, forming business due diligence consulting teams, assigning business due diligence consulting tasks, etc.;(2) the preparation of business due diligence consulting, including collecting and sorting out relevant materials of target enterprises, develop a list of business due diligence consulting questions, arrange business due diligence consulting interviews and research, etc.;(3) Business due diligence consulting implementation, including in-depth analysis and evaluation of all aspects of the target enterprise, the use of business due diligence consulting methods and tools, access to and verification of business due diligence consulting data and information, the formation of a preliminary business due diligence consultingConclusionand recommendations, etc.;(4) commercial due diligence consulting summary, including collating and summarizing the results of commercial due diligence consulting, preparing commercial due diligence consulting reports, conducting commercial due diligence consulting exchanges and feedback with customers, and providing follow-up support for commercial due diligence consulting.

When providing commercial due diligence consulting services to a medical device company, Shangpu Consulting has developed a reasonable commercial due diligence consulting program and process. The medical device company is a company specializing in the production and sale of cardiac pacemakers, with advanced technology and high-quality products. The purpose of the medical device company's commercial due diligence consultation was to seek cooperation with an internationally renowned medical device company to expand its market share and increase its brand influence. According to the purpose and scope of the medical device company's commercial due diligence consultation, Shangpu Consulting Company has formulated a commercial due diligence consultation plan, which mainly includes the following aspects:(1) the commercial due diligence consultation objective, which is to provide a comprehensive, in-depth and objective commercial due diligence consultation report for the medical device company to show its matching degree and cooperation value with its partners;(2) the commercial due diligence consultation content, that is, to analyze and evaluate the market, competition, finance, law, technology and other aspects of the medical device company, as well as to study and understand the background, strategy and needs of the partners;(3) commercial due diligence consulting structure, that is, according to the scope of commercial due diligence consulting, the commercial due diligence consulting report is divided into the following parts: abstract, company introduction, market analysis, competition analysis, financial analysis, legal analysis, technical analysis, cooperation analysis, conclusions and suggestions;(4) commercial due diligence consulting methods, that is, the use of common commercial due diligence consulting methods, such as literature analysis, data analysis, comparative analysis, interview research, case analysis, etc., to obtain and verify commercial due diligence consulting data and information;(5) Commercial due diligence consulting tools, that is, the common tools of commercial due diligence consulting, such as SWOT analysis, PEST analysis, Porter's five forces analysis, financial ratio analysis, discounted cash flow analysis, etc., are used to carry out commercial due diligence consulting analysis and evaluation;(6) Commercial due diligence consulting resources, that is, to determine the demand and allocation of personnel, funds, equipment, time and other resources of the commercial due diligence consulting team;(7) Commercial due diligence consultation time, that is, to formulate a timetable for commercial due diligence consultation, including the start time, end time, time nodes of each stage, etc.;(8) Commercial due diligence consultation cost, that is, to estimate the total cost of commercial due diligence consultation, including labor cost, material cost, financial cost, etc., as well as the income and profit of commercial due diligence consultation, etc;(9) the quality of commercial due diligence consulting, that is, to formulate the quality standards and quality control methods of commercial due diligence consulting, including the accuracy, completeness and reliability of commercial due diligence consulting data and information, as well as the logic, clarity and professionalism of commercial due diligence consulting reports;(10) the risks of commercial due diligence consulting, that is, to identify and evaluate the risks that commercial due diligence consulting may face, such as the disclosure, alteration and loss of commercial due diligence consulting data and information, as well as the misleading, feedback and litigation of commercial due diligence consulting reports, as well as the formulation of countermeasures and preventive measures against the risks of commercial due diligence consulting. According to the commercial due diligence consulting scheme, Shangpu Consulting Company has formulated the commercial due diligence consulting process, which mainly includes the following steps:(1) Commercial due diligence consulting start-up, including signing a commercial due diligence consulting contract with the medical device company, establishing commercial due diligence consulting contact with partners, forming a commercial due diligence consulting team, assigning commercial due diligence consulting tasks, etc.;(2) Commercial due diligence consulting preparation, including collecting and sorting out the relevant materials of the medical device company and its partners, formulating the list of commercial due diligence consulting problems, arranging commercial due diligence consulting interviews and research, etc.;(3) The implementation of commercial due diligence consulting includes in-depth analysis and evaluation of the market, competition, finance, law, technology and other aspects of the medical device company, and to study and understand the background, strategy and needs of the partners, to use commercial due diligence consulting methods and tools, to obtain and verify commercial due diligence consulting data and information, and to form preliminary conclusions and suggestions of commercial due diligence consulting;(4) Commercial due diligence consulting summary, including sorting and summarizing the results of commercial due diligence consulting, and preparing commercial due diligence consulting reports, conduct commercial due diligence consultation exchange and feedback with the medical device company and partners, and provide follow-up support for commercial due diligence consultation. By formulating a reasonable commercial due diligence consulting program and process, Shangpu Consulting Company has provided the medical device company with an efficient, efficient and high-quality commercial due diligence consulting service, which has laid a solid foundation for its cooperation with its partners.

3. use effective businessDue diligence consultationmethods and tools

Business due diligence consulting methods and tools refer to the techniques, tools, models and systems used by consulting firms in conducting business due diligence consulting. The use of effective commercial due diligence consulting methods and tools can help consulting companies improve the efficiency and effectiveness of commercial due diligence consulting, and improve the level and quality of analysis and evaluation of commercial due diligence consulting.

Commercial due diligence consulting methods refer to the techniques and means used by consulting firms in conducting commercial due diligence consulting. The commercial due diligence consulting methods mainly include the following:(1) literature analysis, that is, by reading and analyzing the relevant documents of the target enterprise, such as official websites, annual reports, announcements, news, papers, etc., to obtain and understand the basic situation, development process, strategic planning, performance, etc. of the target enterprise;(2) data analysis, that is, by collecting and processing the relevant data of the target enterprise, such as market data, competitive data, financial data, legal data, technical data, etc., to calculate and display the target enterprise's indicators, proportions, trends, forecasts, etc.;(3) comparative analysis, I .e., by comparing with other enterprises in the same industry, size, region, etc., of the target enterprise, to evaluate and compare the market position, competitive advantage, financial situation, legal compliance, technological innovation, etc. of the target enterprise;(4) interview and research, that is, through face-to-face or remote communication and communication with the management, employees, customers, suppliers, partners, industry experts, etc. of the target enterprise, in order to obtain and verify the internal situation, external environment, problems and challenges, opportunities and potential of the target enterprise;(5) Case analysis, that is, by referring to and drawing on the successful or failed business due diligence consulting cases of the target enterprise's industry or related industries, in order to summarize and refine the experience and lessons, enlightenment and suggestions of the target enterprise's business due diligence consulting.

Commercial due diligence consulting tools refer to the models and systems used by consulting firms in conducting commercial due diligence consulting. Business due diligence consulting tools mainly include the following:(1)SWOT analysis, that is, by analyzing the strengths (Strengths), weaknesses (Weaknesses), opportunities (Opportunities) and threats (Threats) of the target enterprise, to identify and evaluate the internal conditions and external environment of the target enterprise, as well as the development potential and risk factors of the target enterprise;(2)PEST analysis, that is, by analyzing the macro factors such as politics (Political), economy (Economic), society (Social) and technology (Technological) of the target enterprise, to understand and predict the market trend and development opportunities of the target enterprise, as well as the compliance and adaptability of the target enterprise;(3) Porter's five forces analysis, that is, by analyzing the five competitive forces of the target enterprise's industry, that is, the bargaining power of suppliers (BargainingPowerofSuppliers), the bargaining power of buyers (BargainingPowerofBuyers), the degree of competition of existing competitors (RivalryamongExistingCompetitors), the entry barriers of new entrants (ThreatofNewEntrants) and the substitution threat of substitutes (ThreatofSubstitutes) to judge and evaluate the competitive advantages and competitive strategies of the target enterprise;(4) Financial ratio analysis, that is, by calculating and analyzing various financial ratios of the target enterprise, such as operating income growth rate, gross profit margin, net interest rate, asset liability ratio, current ratio, quick ratio, return on shareholders' equity, earnings per share, etc., to measure and compare the financial situation and profitability of the target enterprise;(5) discounted cash flow analysis, that is, by predicting and adjusting the future cash flow of the target enterprise, and determining the appropriate discount rate, To calculate and evaluate the enterprise value and return on investment of the target enterprise.

When providing commercial due diligence consulting services to a new energy vehicle company, Shangpu Consulting has used effective commercial due diligence consulting methods and tools. The new energy vehicle company is a company specializing in the production and sales of electric vehicles, with leading technology and high-quality products. The purpose of the new energy vehicle company's commercial due diligence consultation is to seek a merger and acquisition with a well-known domestic automobile manufacturer to increase its scale effect and market share. According to the purpose and scope of the new energy vehicle company's commercial due diligence consulting, Shangpu Consulting Company uses the following commercial due diligence consulting methods and tools:(1) literature analysis, by reading and analyzing the relevant literature of the new energy vehicle company and the acquirer, such as the official website, annual report, announcement, news, papers, etc, in order to obtain and understand the basic situation, development process, strategic planning, performance, etc. of both parties;(2) data analysis, through the collection and processing of relevant data of the new energy vehicle company and the acquirer, such as market data, competition data, financial data, legal data, technical data, etc., to calculate and display the indicators, proportions, trends, forecasts, etc. of both parties;(3) comparative analysis, by comparing with the new energy vehicle company and other automobile companies in the same industry, the same size, the same region, etc., to evaluate and compare the market position, competitive advantage, financial situation, legal compliance, technological innovation, etc. of both parties;(4) interview research, through face-to-face or remote communication and exchange with the management, employees, customers, suppliers, partners, industry experts, etc. of the new energy vehicle company and the acquirer to obtain and verify the internal situation, external environment, problems and challenges, opportunities and potentials of both parties;(5) case analysis, by referring to and learning from the successful or failed commercial due diligence consulting cases of the new energy automobile company's industry or related industries, we can summarize and refine the experience, lessons, enlightenment and suggestions of the commercial due diligence consulting of both parties;(6)SWOT analysis, through analyzing the advantages, disadvantages, opportunities and threats of the new energy automobile company and the acquirer, to identify and evaluate the internal conditions and external environment of both parties, and the development potential and risk factors of both parties;(7)PEST analysis, through the analysis of the political, economic, social and technological macro factors of both parties, to understand and predict the market trends and development opportunities of both parties, as well as the compliance of both parties And adaptability;(8) Porter Five Forces Analysis, through the analysis of the five competitive forces of the industry in which both parties are located, to judge and evaluate the competitive advantages and competitive strategies of both parties;(9) Financial ratio analysis, by calculating and analyzing various financial ratios of both parties to measure and compare the financial status and profitability of both parties;(10) Discounted cash flow analysis, by predicting and adjusting the future cash flow of both parties, and determining the appropriate The discount rate is used to calculate and evaluate the enterprise value and return on investment of both parties. Through the use of effective commercial due diligence consulting methods and tools, Shangpu Consulting Company has provided a professional, accurate and valuable commercial due diligence consulting report for the new energy vehicle company, which has laid a solid foundation for the success of its merger with the acquirer.

4. writing high-quality businessDue diligence consultationReport

The commercial due diligence advisory report refers to the results of the commercial due diligence advisory submitted by the consulting firm to the client after the completion of the commercial due diligence advisory,Conclusionand proposed written documents. The Commercial due diligence consulting report is the final result and the most important deliverable of commercial due diligence consulting, and it is also an important way for consulting companies to demonstrate their commercial due diligence consulting capabilities and levels. The preparation of high-quality business due diligence consulting reports can help consulting companies improve the efficiency and effectiveness of business due diligence consulting, and enhance the persuasiveness and influence of business due diligence consulting.

The preparation of high-quality business due diligence consulting reports should follow the following principles:(1) logic, that is, the content and structure of business due diligence consulting reports should be logical, with clear themes, purposes, scope, methods, results, conclusions and recommendations, clear levels, connections and transitions, sufficient arguments, analysis and evidence, and reasonable assumptions, inferences and recommend;(2) Clarity, that is, the language and expression of the commercial due diligence consultation report should be clear, with clear titles, abstracts, catalogues, introductions, main bodies, conclusions, appendices, etc., concise sentences, paragraphs, chapters, etc., unified terms, symbols, units, etc., and standardized citations, annotations, references, etc. (3) Professionalism, that is, the content and form of the business due diligence consulting report should be professional, with accurate data, information, indicators, proportions, trends, forecasts, etc., effective methods, tools, models, systems, etc., professional charts, graphs, images, legends, etc., professional analysis, evaluation, explanation, explanation, etc.;(4) Objectivity, that is, the views and attitudes of the commercial due diligence consultation report should be objective, with fair positions, angles, judgments, evaluations, etc., neutral tone, wording, rhetoric, etc., avoidance of prejudice, misleading, exaggeration, belittling, etc., and recognition of uncertainty, limitations, risks, etc.

Shangpu Consulting Company has prepared high-quality commercial due diligence consulting reports when providing commercial due diligence consulting services for an e-commerce platform, a medical device company and a new energy vehicle company. These commercial due diligence consulting reports follow the principles of logic, clarity, professionalism and objectivity, as well as requirements that meet the needs and expectations of clients, and standards that reflect the capabilities and standards of the consulting firm. These commercial due diligence consulting reports have been highly recognized and appreciated by customers, and have also won a good reputation and competitiveness for consulting companies.

Conclusion

This paper discusses how to improve the efficiency and effectiveness of commercial due diligence consulting from four aspects: clarifying the purpose and scope of commercial due diligence consulting, formulating reasonable commercial due diligence consulting programs and processes, using effective commercial due diligence consulting methods and tools, and preparing high-quality commercial due diligence consulting reports. This paper argues that improving the efficiency and effectiveness of business due diligence consulting requires not only adequate communication and collaboration between consulting firms and clients, but also the expertise and experience of consulting firms, as well as their innovative capabilities and service awareness. This paper also combines the specific cases of Shangpu Consulting Company in providing commercial due diligence consulting services for an e-commerce platform, a medical device company and a new energy vehicle company, and shows the practice and experience of Shangpu Consulting Company in improving the efficiency and effect of commercial due diligence consulting.

Recommendations

This paper gives the following suggestions to help consulting companies improve the efficiency and effectiveness of commercial due diligence consulting:(1) Before conducting commercial due diligence consulting, fully communicate with customers to understand the purpose and scope of commercial due diligence consulting, so as to determine the focus and focus of commercial due diligence consulting;(2) When formulating commercial due diligence consulting programs and processes, according to the client's commercial due diligence consulting purpose and scope, as well as the consulting company's commercial due diligence consulting experience and capabilities, tailor-made to meet the client's needs and expectations, while considering the interests and risks of the consulting company;(3) When using commercial due diligence consulting methods and tools, according to the content and structure of commercial due diligence consulting, select appropriate commercial due diligence consulting methods and tools, to improve the level and quality of the analysis and evaluation of commercial due diligence consulting;(4) When preparing the commercial due diligence consulting report, follow the principles of logic, clarity, professionalism and objectivity, and meet the needs and expectations of customers. Requirements, and standards that reflect the ability and level of consulting companies to enhance the persuasiveness and influence of commercial due diligence consulting.