1. CommercialDue diligence consultationThe purpose

The purpose of business due diligence consulting is to provide customers with objective, comprehensive and accurate business information to help them assess the true value, potential risks and development opportunities of the target business or project, so as to support customers in making reasonable business decisions. The clients of commercial due diligence consulting usually include the following categories:

Merger: Before acquiring the target enterprise, it is necessary to conduct a detailed investigation and analysis of the financial, legal, market and operational aspects of the target enterprise to determine the true value and risk of the target enterprise, as well as the feasibility and profitability of the merger.

The acquired party: Before being acquired, it is necessary to conduct a comprehensive review and optimization of its own finance, law, market, operation and other aspects to improve its attractiveness and bargaining power, as well as to reduce the risk and cost of being acquired.

Investor: Before investing in the target project, an in-depth investigation and analysis of the financial, legal, market, and operational aspects of the target project is required to assess the true value and risk of the target project, as well as the rate of return and risk of the investment.

Partner: Before cooperating with the target enterprise or project, it is necessary to conduct a systematic investigation and analysis of the financial, legal, market and operational aspects of the target enterprise or project to assess the reputation, ability and willingness to cooperate of the target enterprise or project, as well as the feasibility and effectiveness of the cooperation.

The purpose of business due diligence consulting is not only to provide customers with information, but more importantly, to provide customers with insights and suggestions, to help customers identify and solve business problems, formulate and implement business strategies, and enhance business value.

2. CommercialDue diligence consultationThe process

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

Determine the scope and objectives of commercial due diligence: communicate with customers, understand their business needs and expectations, clarify the object, scope, objectives and standards of commercial due diligence, and formulate plans and programs for commercial due diligence.

Collect and organize business information: collect financial, legal, market, operational and other information of the target enterprise or project through various channels and methods, such as interviews, questionnaires, observations, data mining, market research, etc., and organize, classify, verify and store the information.

Analysis and evaluation of business information: use a variety of analysis and evaluation methods and tools, such as financial analysis, legal analysis, market analysis, competitive analysis, risk analysis, value evaluation, etc., to conduct in-depth analysis and evaluation of the collected business information, identify the advantages, disadvantages, opportunities and threats of the target enterprise or project, as well as its impact and value on customers.

Write and submit a business due diligence report: according to the results of analysis and evaluation, write a business due diligence report, which should include the following parts: background, purpose, scope and method of business due diligence; information, analysis and evaluation of the profile, finance, law, market, operation, etc. of the target enterprise or project; comprehensive evaluation of the value, risks and opportunities of the target enterprise or project; commercial due diligenceConclusionRecommendations and action plans. Submit commercial due diligence reports to customers, discuss and communicate with customers, answer customers' questions and feedback, and provide follow-up support and services.

The process of business due diligence consulting is not fixed, but is flexibly adjusted and optimized according to different customers, goals, situations and needs to ensure the efficiency and quality of business due diligence.

3. CommercialDue diligence consultationMethods and tools

The methods and tools of business due diligence consulting refer to the various technologies and means used by consulting companies in the process of business due diligence consulting to help consulting companies collect, organize, analyze, evaluate and present business information and provide business insights and suggestions. There are many methods and tools for commercial due diligence consulting, and the following are some commonly used ones:

SWOT Analysis: SWOT analysis is an analysis of the strengths (Strengths), weaknesses (Weaknesses), opportunities, types, degrees, sources and impacts of legal risks of the target enterprise or project, such as litigation disputes, contract breaches, license expiration, tax violations, audit issues, etc.

Human resources due diligence. Human resources due diligence refers to the investigation and analysis of the human resources status, human resources management, human resources risks, etc. of the target company or project to assess its human resources value and human resources security. The main contents of human resources due diligence include:

The scale, structure, distribution and change of human resource situation, such as the number, quality, type, position, salary, welfare, performance, mobility, etc.

The standardization, effectiveness and risk of human resource management, such as human resource system, human resource process, human resource control, human resource training, human resource incentive, human resource evaluation, etc.

The type, extent, source and impact of human resource risks, such as labor contracts, labor disputes, labor protection, labor relations, labor safety, labor injuries, etc.

3.Commercial due diligenceprocess and method

The processes and methods of commercial due diligence are also based on the specific circumstances of the transaction or cooperation, and there are no fixed standards and models. Generally speaking, the process and method of commercial due diligence can be divided into the following steps:

Determine the scope and objectives of due diligence. This step is to clarify the content and purpose of commercial due diligence, as well as basic information about the transaction or cooperation, such as the parties, type, scale, timing, and conditions of the transaction or cooperation. This step also requires the identification of due diligence responsibilities and coordination mechanisms, as well as due diligence budgets and schedules.

Collect due diligence data and information. This step is to obtain data and information on all aspects of the target company or project for in-depth analysis and evaluation. This step requires the use of a variety of methods and channels, such as access to documents, access to the site, interviewing people, observing the scene, and investigating the market. This step also requires the collation, classification, verification and archiving of the collected data and information.

conduct a due diligence analysis and assessment. This step is to conduct a comprehensive, in-depth and detailed analysis and evaluation of all aspects of the target company or project in order to arrive at a valuableConclusionand recommendations. This step requires the use of a variety of tools and techniques, such as financial analysis, business analysis, market analysis, risk analysis, valuation analysis, strategic analysis, etc. This step also requires the summary, integration, comparison and optimization of the results of the analysis and evaluation.

Write due diligence reports and recommendations. This step is to present the process and results of the due diligence in writing to the parties to the transaction or cooperation in order to provide them with reference and support. This step requires the writing of clear, complete, accurate and objective due diligence reports and recommendations, as well as the attachment of relevant materials and information. This step also requires the review, revision, signing and submission of the due diligence report and recommendations.

4.Commercial due diligenceTips and tricks

Commercial due diligence is a complex and important task, and some tips and tricks need to be paid attention to to improve the quality and efficiency of due diligence. Here are some common tips and tricks:

Fully prepared and planned. Prior to commercial due diligence, it is necessary to fully understand the background and purpose of the transaction or cooperation, as well as the basic situation of the target company or project, in order to determine the scope and objectives of the due diligence, as well as the division of responsibilities and coordination mechanisms for the due diligence, as well as the due diligence budget and schedule. Adequate preparation and planning can avoid the blindness and arbitrariness of due diligence, as well as the delay and waste of due diligence.

Flexible use of methods and channels. In the process of collecting due diligence materials and information, it is necessary to flexibly use various methods and channels, such as consulting documents, visiting websites, interviewing personnel, observing the scene, investigating the market, etc. Flexible methods and channels can increase the breadth and depth of due diligence, as well as the authenticity and effectiveness of due diligence. At the same time, attention needs to be paid to the selection and combination of methods and channels to avoid duplication and conflict of due diligence, as well as bias and distortion of due diligence.

Integrated use of tools and techniques. In the process of due diligence analysis and evaluation, a combination of tools and techniques, such as financial analysis, business analysis, market analysis, risk analysis, valuation analysis, strategic analysis, etc. Integrated tools and techniques can improve the scientific and professional nature of due diligence, as well as the comprehensiveness and detail of due diligence. At the same time, attention needs to be paid to the applicability and compatibility of tools and technologies to avoid simplification and complexity, as well as deviation and misleading.

Timely communication and feedback. Timely communication and feedback are required in the process of writing due diligence reports and recommendations to ensure the accuracy and objectivity of due diligence, as well as the clarity and completeness of due diligence. Timely communication and feedback can increase due diligence transparency and trust, as well as due diligence consistency and coordination. At the same time, attention needs to be paid to the manner and content of communication and feedback to avoid due diligence leaks and misunderstandings, as well as due diligence conflicts and disputes.

Conclusion

Commercial due diligence is an important task for all parties to a transaction or cooperation and requires a high degree of professionalism and responsibility. As a professional service provider for commercial due diligence, consulting firms can provide professional guidance and support to the parties to a transaction or cooperation to help them achieve the objectives of the transaction or cooperation. As a leading consulting company, Champ Consulting has rich experience and ability in business due diligence, providing high-quality business due diligence services to many customers and winning the trust and praise of customers. The following are some specific cases of Champ Consulting's service clients, demonstrating the role and value of Champ Consulting in business due diligence.

Case 1: Champu Consulting provided a US e-commerce company with commercial due diligence services to a Chinese e-commerce company to help the US company assess the value, risks and potential of the Chinese company in order to conduct an acquisition transaction. Through consulting documents, interviewing personnel and investigating the market, Shangpu Consulting conducted a comprehensive and in-depth analysis and evaluation of the financial situation, business situation, market situation and legal situation of Chinese companies, and applied tools and techniques such as financial analysis, business analysis, market analysis, risk analysis, valuation analysis and strategic analysis, A scientific, professional, comprehensive and detailed assessment of the value, risks and potential of Chinese companies has been carried out, and valuableConclusionand recommendations. Shangpu Consulting also wrote clear, complete, accurate and objective due diligence reports and suggestions, timely communication and feedback, and provided reference and support for American companies. In the end, the American company successfully acquired the Chinese company and achieved a win-win situation for both parties.

Case 2: Champ Consulting provided a Chinese pharmaceutical company with commercial due diligence services to a U.S. pharmaceutical company to help the Chinese company assess the value, risks and potential of the U.S. company in order to conduct cooperative transactions. By consulting documents, visiting websites, interviewing personnel, and investigating the market, Shangpu Consulting has conducted a comprehensive investigation and collection of the financial status, business status, market status, and legal status of U.S. companies, collating, classifying, verifying and archiving Relevant materials and information. Through the use of financial analysis, business analysis, market analysis, risk analysis, valuation analysis, strategic analysis and other tools and techniques, Shangpu Consulting has conducted a scientific, professional, comprehensive and detailed analysis and evaluation of the value, risk and potential of U.S. companies.Conclusionand recommendations. Shangpu Consulting also wrote clear, complete, accurate and objective due diligence reports and suggestions, timely communication and feedback, and provided reference and support for Chinese companies. In the end, the Chinese company successfully reached a cooperation agreement with the American company, realizing mutual benefit.

Case 3: Champ Consulting provided a European car company with commercial due diligence services to an Asian car company to help European companies assess the value, risks and potential of Asian companies for investment transactions. Through consulting documents, visiting websites, interviewing personnel, observing the scene and investigating the market, Shangpu Consulting has conducted a comprehensive investigation and collection of the financial situation, business situation, market situation and legal situation of Asian companies, collating, classifying, verifying and archiving relevant materials and information. Through the use of financial analysis, business analysis, market analysis, risk analysis, valuation analysis, strategic analysis and other tools and techniques, Shangpu Consulting has conducted a scientific, professional, comprehensive and detailed analysis and evaluation of the value, risk and potential of Asian companies.Conclusionand recommendations. Champ Consulting also wrote clear, complete, accurate and objective due diligence reports and recommendations, timely communication and feedback, and provided reference and support for European companies. In the end, European companies successfully invested in Asian companies and achieved a win-win situation for both sides.