Business investment is a complex and risky activity, which requires investors to make a comprehensive and in-depth understanding and evaluation of the target enterprise in order to make a reasonable and scientific investment decision. Investment due diligence consulting is a professional service designed to help investors have a comprehensive and in-depth understanding of the business model, market environment, competitive advantage, risk challenges and other aspects of the target enterprise before making acquisitions, mergers and acquisitions, listing and other transactions, so as to make more rational and scientific investment decisions. Taking Shangpu Consulting Group as an example, this paper introduces its professional experience and service advantages in the field of investment due diligence consulting, and analyzes how to provide investors with high-quality investment due diligence consulting services to help investors achieve the success of business investment.

Business investment is a complex and risky activity, involving the interests and coordination of multiple parties, which requires investors to conduct a comprehensive and in-depth understanding and evaluation of the target enterprise in order to make reasonable and scientific investment decisions. In the process of business investment, investment due diligence consulting is an indispensable link, which can help investors effectively solve the problem of information asymmetry, comprehensively grasp the value and risk of the target enterprise, optimize the investment structure and terms, avoid investment risks and improve the return on investment.

Investment due diligence consultation, also known as Due Diligence (DD), generally refers to a comprehensive and in-depth review of the historical data and documents of the enterprise, the background of the management personnel, market risk, management risk, technical risk and capital risk after the investor and the target enterprise have reached an initial cooperation intention. The main purpose of investment due diligence consulting is to resolve the information asymmetry between the two investors and help investors further determine the value and risk of the enterprise.

The content and scope of investment due diligence advice vary and focus depending on the type and purpose of the investment. In general, investment due diligence advice can be divided into the following areas:

-Business due diligence: mainly focus on the business model, market environment, competitive advantage, development strategy, customer relationship, supply chain management, marketing channels, product quality, innovation ability, etc. of the target enterprise, and evaluate the market position, profitability, growth potential, competitiveness, etc.

-Financial due diligence: mainly focus on the financial situation, financial management, financial risk and other aspects of the target enterprise, review the target enterprise's financial statements, accounting policies, tax situation, assets and liabilities, cash flow, profitability, cost structure, internal control, etc.

-Legal due diligence: mainly focuses on the legal compliance and legal risks of the target enterprise, and checks the legal qualifications, legal documents, legal disputes, contractual agreements, intellectual property rights, labor relations, etc. of the target enterprise.

-Technical due diligence: mainly focus on the technical capability and technical risk of the target enterprise, and evaluate the technical level, technological innovation, technology protection, technology transfer and technology dependence of the target enterprise.

-Environmental due diligence: mainly focuses on the environmental impact and environmental responsibility of the target enterprise, and analyzes the environmental compliance, environmental risk, environmental management and environmental cost of the target enterprise.

The process and methodology of investment due diligence consulting generally includes the following steps:

-Step 1: Clarify due diligence requirements. The investor signs a letter of intent or investment framework agreement with the target enterprise, specifying the purpose, scope, time and manner of investment due diligence consulting, as well as the prerequisites and constraints of investment due diligence consulting.

-Step 2: Prepare due diligence information. The investor sets up a due diligence team, including the investor's own professionals and externally hired third-party professional institutions (such as accounting firms, law firms, consulting firms, etc.), and submits a list of due diligence information to the target enterprise, requiring the target enterprise to provide relevant internal and external information within the specified time.

-Step 3: Conduct due diligence. According to the due diligence requirements and due diligence data, the due diligence team conducts a comprehensive and in-depth investigation and analysis of all aspects of the target enterprise by means of field visits, data review and personnel interviews, finds out and evaluates the value and risks of the target enterprise, and forms a due diligence working paper.

-Step 4: Form a due diligence report. Based on the due diligence working papers, the due diligence team summarizes and summarizes the main findings and conclusions of the due diligence, forms a due diligence report, and provides an explanation and explanation of the contents of the due diligence report.

Investment due diligence consulting is a professional service that requires rich industry experience, professional knowledge, analytical and communication skills, as well as keen insight and judgment of the investment market. Shangpu Consulting Group (S & P Consulting) is a well-known independent third-party research and investment and financing consulting organization in China, dedicated to providing professional solutions for corporate strategic decision-making. Shangpu Consulting Group has professional experience and service advantages in the field of investment due diligence consulting, which can provide investors with high-quality investment due diligence consulting services and help investors achieve the success of business investment.

The advantages of the investment due diligence advisory services of the Shangpu Consulting Group are mainly reflected in the following aspects:

-Professional due diligence team. Shangpu Consulting Group has a professional due diligence team. The team members have many years of experience in industry research, market research, investment consulting, financial auditing, legal services, etc., and can provide investors with investment according to different investment types and purposes. Comprehensive, in-depth and customized investment due diligence consulting services.

-Abundant industry resources. Shangpu Consulting Group has a professional database and information platform covering many industries and fields, which can provide a large amount of first-hand and second-hand data and information for investment due diligence consulting. At the same time, Shangpu Consulting Group has also established good cooperative relations with a number of industry associations, government agencies, media institutions, research institutions, etc., which can provide more industry insights and expert opinions for investment due diligence consulting.

-Flexible approach to due diligence. According to the needs and characteristics of different investment due diligence consulting, Shangpu Consulting Group adopts flexible due diligence methods, combined with on-site visits, data review, personnel interviews, data analysis, model establishment and other methods, to conduct a comprehensive and in-depth investigation and analysis of all aspects of the target enterprise, and provide investors with more comprehensive, accurate and objective due diligence reports from multiple angles and dimensions.

-Efficient due diligence process. Shangpu Consulting Group follows an efficient due diligence process, providing investors with efficient investment due diligence consulting services in four steps: clarifying due diligence requirements, preparing due diligence materials, carrying out due diligence work, and forming due diligence reports, so as to shorten the due diligence time as much as possible, reduce the cost of due diligence, and improve the effect of due diligence.

The investment due diligence consulting service of Shangpu Consulting Group can help investors to have a comprehensive and in-depth understanding of the business model, market environment, competitive advantage, risk challenges and other aspects of the target enterprise before making acquisitions, mergers and acquisitions, listing and other transactions, so as to make more rational and scientific investment decisions and achieve the success of business investment. The investment due diligence consulting services of Shangpu Consulting Group have provided professional investment due diligence consulting services for investors in many industries and fields, and have been highly recognized and satisfied by investors.