Concept and purpose of commercial due diligence consulting

Business due diligence consulting (CommercialDueDiligence,CDD) refers to the investigation of the internal and external environment and situation of the company's business development by a professional management and consulting team from the outside and inside after the investor has reached an initial cooperation intention with the target company. evaluate and analyze the key factors for the enterprise to achieve its development plan, and study the business prospects and future development trends of the target company.

The purpose of business due diligence consulting is to support investment decisions, choose the right investment target, avoid investment risks, and improve investment returns. Commercial due diligence consulting can help investors:

Understand the target company's market position, competitive advantage, profit model, growth potential and risk points;

Verify the rationality, feasibility and sustainability of the target company's business plan;

Discover the potential value and room for improvement of the target company;

Determine whether the valuation of the target company is reasonable and make investment recommendations and negotiation strategies;

Develop a post-investment management plan to monitor the performance and risk control of the target company.

Types and characteristics of commercial due diligence consulting

The types of commercial due diligence consulting can be divided according to different analytical dimensions and perspectives, generally including the following five types:

Market due diligence: Market due diligence refers to the analysis of the market environment in which the target company operates, including market size, market growth, market structure, market demand, market trends, market opportunities and market risks. The purpose of market due diligence is to assess the market attractiveness and market potential of the target company, as well as the positioning and competitiveness of the target company in the market.

Competitive due diligence: Competitive due diligence refers to the analysis of the target company's competitors, including the number of competitors, size, products, strategies, strengths, weaknesses, market share, profitability, development trends and threats. The purpose of competitive due diligence is to assess the competitive environment and competitive advantages of the target company, as well as the competitive pressures and challenges faced by the target company.

Business due diligence: Business due diligence refers to the analysis of the core business of the target company, including business scope, business structure, business process, business model, business innovation, business quality, business efficiency, business risk and business prospects. The purpose of business due diligence is to assess the target company's business capabilities and business value, as well as the target company's business stability and growth.

Organizational due diligence: Organizational due diligence refers to the analysis of the internal organization of the target company, including organizational structure, organizational culture, organizational climate, organizational resources, organizational capabilities, organizational performance, organizational change and organizational issues. The purpose of organizational due diligence is to assess the organizational efficiency and organizational synergy of the target company, as well as the organizational optimization and improvement potential of the target company.

Risk due: Risk due refers to the analysis of the potential risks of the target company, including market risk, competitive risk, business risk, organizational risk, legal risk, financial risk, technical risk, operational risk and strategic risk. The purpose of risk due diligence is to identify and assess the target company's risk level and risk control, as well as the target company's ability to respond to and avoid risks.

The main characteristics of commercial due diligence consulting are as follows:

Focus on the future: Business due diligence consulting focuses not only on the past and present of the target company, but also on the future of the target company, predicting the future performance and value of the target company through the deduction and validation of the target company's business plan and development strategy.

Objectivity and impartiality: Business due diligence consulting requires the consulting team to maintain an objective and impartial attitude, free from the influence or interference of investors or target companies, collect and analyze data and information through a variety of channels and methods, and avoid one-sided and biasedConclusion。

Comprehensive and in-depth: Business due diligence consulting requires the consulting team to conduct a comprehensive and in-depth analysis of all aspects of the target company, not only to focus on the surface of the target company, but also to explore the target company's internal logic and potential problems, revealing the target company's real situation and core issues.

Efficient and flexible: Commercial due diligence consulting requires the consulting team to complete high-quality consulting reports within limited time and resources to provide timely and effective support for investment decisions. The consulting team should flexibly adjust the scope, content and methods of consulting according to different investment objectives and the characteristics of the target company to meet the individual needs of customers.

Business due diligence advisory services from Champ Consulting

Shangpu Consulting is a well-known independent third-party research and investment and financing consulting agency in China. It has rich business due diligence consulting experience and customer resources, and can provide customers with professional, efficient and practical business due diligence consulting services. The service scope, service process, service advantages and service cases of Shangpu Consulting in the field of commercial due diligence consulting are as follows:

Scope of services: The business due diligence consulting services of Shangpu Consulting cover various industries and fields, including but not limited to Internet, consumer goods, medical and health, education, finance, energy, industry, real estate, transportation and logistics, etc. The commercial due diligence consulting services of Shangpu Consulting are applicable to various investment scenarios, including but not limited to mergers and acquisitions, equity investment, debt investment, strategic cooperation, listing, restructuring, etc.

Service process: The commercial due diligence consulting service of Champ Consulting follows the following four steps:

The first step: demand communication. Shangpu Consulting conducts in-depth communication with customers, understands customers' investment objectives, investment targets, investment strategies, investment budgets, investment schedules, etc., clarifies the objectives, scope, content and methods of commercial due diligence consulting, and formulates work plans and work arrangements for commercial due diligence consulting.

Step 2: Data collection. Shangpu Consulting collects relevant data and information of the target company through a variety of channels and methods, including but not limited to public information, internal information, first-hand research, second-hand research, expert interviews, industry analysis, competitive analysis, etc., to ensure the comprehensiveness, accuracy and validity of the data and information.

Step 3: Data analysis. Shangpu Consulting systematically collates, summarizes, analyzes and evaluates the collected data and information, and uses professional analysis tools and methods, such as SWOT analysis, PEST analysis, Porter's five forces analysis, value chain analysis, financial analysis, sensitivity analysis, etc., to reveal the business status and business prospects of the target company, identify the value points and risk points of the target company, and put forward the value evaluation and investment suggestions of the target company.

Step 4: Presentation of the report. According to the customer's needs and format, Shangpu Consulting writes a business due diligence consulting report, which includes but is not limited to market analysis, competition analysis, business analysis, organizational analysis, risk analysis, value assessment, investment advice, etc. The report forms include but are not limited to PPT, Word, Excel, etc. Shangpu Consulting conducts report exchange and feedback with customers, answers customers' questions and concerns, and improves the content and quality of the report.

Service advantages: The commercial due diligence consulting service of Champ Consulting has the following advantages:

Independent and objective: As an independent third-party consulting agency, Shangpu Consulting is not affected by the interests of any investor or investee, maintains an objective and fair position, and provides customers with true and credible business due diligence consulting reports.

Professional and efficient: Shangpu Consulting has a professional business due diligence consulting team. The team members have rich industry knowledge, market experience and consulting skills. They can complete high-quality business due diligence consulting reports within a limited time, saving customers Time and cost.

Practical: According to the actual needs of customers and the actual situation of the target company, Shangpu Consulting flexibly adjusts the scope, content and methods of commercial due diligence consulting, avoids being too theoretical and patterned, and provides customers with practical commercial due diligence consulting reports.

Continuous support: Shangpu Consulting not only maintains close communication and collaboration with customers in the process of commercial due diligence consulting, timely feedback and problem solving, but also provides customers with continuous support and services in the later stage of commercial due diligence consulting, such as Post-investment management, performance monitoring, risk control, etc., to escort the success of customers' investment.

Service cases: In the field of business due diligence consulting, Shangpu Consulting has provided high-quality services to many well-known investment institutions and enterprises. The following is a brief introduction of some service cases:

Case 1: For an internationally renowned private equity investment institution, he provided commercial due diligence consulting services to a leading online education platform in China. The Shangpu Consulting team conducted a comprehensive and in-depth analysis and evaluation of the market environment, competitive landscape, business model, organizational structure, financial status, and risk factors of the target company, and verified the feasibility and sustainability of the target company's business plan., Put forward reasonable valuation and investment suggestions for customers, and help customers successfully complete their investment in the target company.

Case 2: For a well-known listed real estate development company in China, provided commercial due diligence consulting services to a leading property management service company in China. The Shangpu consulting team systematically and objectively analyzed and evaluated the market demand, competitive advantage, business innovation, organizational ability, financial performance, risk control, etc. of the target company, found the potential value and room for improvement of the target company, put forward cooperation plans and negotiation strategies for customers, and helped customers successfully complete the merger and acquisition of the target company.

Case 3: For a well-known Chinese Internet giant, provided commercial due diligence consulting services for a leading online travel platform in China. The Shangpu consulting team conducted a detailed and professional analysis and evaluation of the market trend, competitiveness, business quality, organizational atmosphere, financial status, risk factors, etc. of the target company, verified the market potential and growth of the target company, and proposed for customers Reasonable valuation and investment suggestions have helped customers successfully complete their strategic investment in the target company.