The significance and content of 1. investment due diligence consultation.

Investment due diligence consulting, also known as prudential investigation (Due Diligence, shortDD) is a comprehensive and in-depth investigation and analysis of all investment-related enterprise matters after the investor and the target enterprise have reached an initial intention and after consultation between the two parties. The main purpose of investment due diligence consulting is to solve the information asymmetry between the two sides of the investment and help investors further determine the value and risk of the enterprise.

Investment due diligence consulting is an essential part of the equity investment process, and the investment team usually makes an objective evaluation of the target enterprise based on the due diligence results to form a due diligence report, and the investment decision-making committee then makes decisions based on the due diligence report and risk control report.

The content of investment due diligence consultation generally includes the following aspects:

-Business due diligence: mainly focus on the company's industry profile, business status, development strategy, market competition, customer suppliers, core resources, etc., to evaluate the company's profitability, growth potential, competitive advantage, etc.

-Financial due diligence: mainly focuses on the financial organization, accounting policy, tax policy, financial reporting and other aspects of the enterprise, and evaluates the financial situation, asset quality, cash flow, financial risk, etc.

-Legal due diligence: mainly focuses on the subject qualification, history, contract agreement, litigation and arbitration of the enterprise, and evaluates the legal compliance, legal liability and legal risk of the enterprise.

-Tax due diligence: mainly focuses on the tax registration, tax declaration, tax benefits, tax inspection and other aspects of enterprises, and evaluates the tax compliance, tax burden, tax risk, etc.

-Environmental due diligence: mainly focuses on the environmental licensing, environmental impact, environmental management, environmental responsibility and other aspects of the enterprise, and evaluates the environmental compliance, environmental impact and environmental risk of the enterprise.

2. the investment due diligence advisory business of the Champ Consulting Group.

Champ Consulting Group (S&P Consulting), is a well-known independent third-party research and investment and financing consulting agency in China, dedicated to providing professional solutions for corporate strategic decision-making. Shangpu Consulting Group has rich experience and achievements in the field of investment due diligence consulting, providing high-quality due diligence consulting services for a number of well-known domestic and foreign investment institutions, listed companies, government guidance funds, etc., involving a number of industries and fields, including the Internet, consumption, health care, education, energy, environmental protection, manufacturing and so on.

The innovation and change of Shangpu Consulting Group in the investment due diligence consulting business is mainly reflected in the following aspects:

(I) build a professional due diligence team

Shangpu Consulting Group has a professional due diligence team composed of members with multiple backgrounds in investment, industry, business, finance, and law. It can conduct comprehensive and in-depth analysis and evaluation of target companies from multiple perspectives and dimensions. The members of the due diligence team of Shangpu Consulting Group not only have rich due diligence experience, but also have relevant professional qualifications, such as certified public accountants, certified tax agents, certified consultants, certified appraisers, etc., to ensure the efficiency and quality of due diligence.

(II) use of advanced data analysis methods and market measurement models

Shangpu Consulting Group uses advanced data analysis methods and market measurement models to provide investors with objective, accurate and comprehensive due diligence reports. Shangpu Consulting Group can not only systematically sort out and verify the historical data and documents of the target enterprise, but also scientifically predict and evaluate the future development of the target enterprise, and provide valuable investment suggestions and strategies for investors in combination with industry dynamics and market changes.

(III) combined with industry research, market research, investment consulting and other business

Shangpu Consulting Group combines its deep accumulation in industry research, market research, investment consulting and other business fields to provide investors with one-stop solutions to help investors achieve their investment goals. Shangpu Consulting Group can not only provide investors with professional due diligence consulting services, but also provide investors with a series of supporting services such as industry analysis reports, market research reports, investment plan design, investment agreement writing, and post-investment management. Save time and cost for investors and improve investment efficiency and income.

(IV) keep an eye on industry dynamics and market changes

Shangpu Consulting Group continues to pay attention to industry dynamics and market changes, adapt to the needs and expectations of investors, and enhance the value and influence of due diligence consulting. Through continuous industry monitoring and market tracking, Shangpu Consulting Group timely captures the development trend of the industry and the changing opportunities of the market, provides investors with the latest industry information and market information, and helps investors grasp the investment opportunity and direction. Shangpu Consulting Group also understands the needs and expectations of investors through continuous communication and feedback with investors, and provides investors with more personalized and customized due diligence consulting services to help investors maximize their investment.

3. Conclusion

Investment due diligence consulting is a professional service, which plays an important role in guiding and supporting investors' investment decisions. Shangpu Consulting Group has rich experience and achievements in the field of investment due diligence consulting, and has provided high-quality due diligence consulting services for many well-known domestic and foreign investment institutions, listed companies, and government guidance funds. The innovation and reform of Shangpu Consulting Group in the investment due diligence consulting business reflects its continuous pursuit of professionalism, scientificity, comprehensiveness and value of investment due diligence consulting, and also shows its leading position and influence in the field of investment due diligence consulting.