The concept and significance of 1. commercial due diligence.

Business Due Diligence (Commercial Due Diligence) generally refers to an investigation of the internal and external environment and operations of the target company after the investor has reached an initial intention to cooperate with the target company, to review and evaluate the key assumptions of its business plan, and to analyze the business outlook. Unlike financial, tax and legal due diligence, commercial due diligence focuses on the future, deduces and analyzes the sustainable development capabilities of the target company, and provides value judgment and correction basis for investment decisions.

The main purposes of commercial due diligence are as follows:

-Verify the core competitiveness of the target company, such as market position, product or service quality, technical level, customer relationship, etc;

-Assess the market opportunities and potential of the target company, such as market size, growth rate, trends, demand, competitive landscape, etc;

-Identify the risks and challenges of the target company, such as market changes, competitors, laws and regulations, technology updates, etc;

-Evaluate the rationality and feasibility of the target company's business plan, such as revenue forecast, cost budget, profit expectation, return on investment, etc;

-Propose suggestions for improvement and optimization of the target company, such as strategic adjustment, business development, cost control, risk aversion, etc.

The significance of commercial due diligence is to help investors understand the real situation and value of the target company through a comprehensive analysis of the target company, avoid blind investment, reduce investment risk, improve investment efficiency, and achieve win-win cooperation.

2. Champ Consulting's commercial due diligence services and cases

Shangpu Consulting Group Co., Ltd. (hereinafter referred to as "Shangpu Consulting"), with registered capital of 50 million, was founded in early 2008. After more than ten years of hard work, Shangpu Consulting has accumulated rich professional experience and customer resources in the fields of industry research, market research, investment and financing consulting, and IPO listing consulting. With strong consulting innovation capabilities, first-class service quality, and Strong market competitiveness is highly recognized by all sectors of society, and has now become one of the most leading and authoritative independent third-party research and investment and financing consulting institutions in China.

As one of the earliest consulting agencies to provide special market research services in China, Shangpu Consulting has been involved in market research business since 2008. In the past 14 years, it has experienced and witnessed the rapid development of China's market research industry. It has provided professional market research and related consulting services to more than 5000 customers, serving customers covering many industry fields, and has now become the most influential domestic leading brand of market research in China, and won the "China market survey customer satisfaction best brand award", with China National Bureau of statistics issued by the "the People's Republic of China foreign-related investigation license".

As a pioneer in domestic investment decision-making consulting, Shangpu is one of the institutions with the most complete qualification certificates in the industry. It has the Grade A credit qualification of China Engineering Consulting Unit. It is a member unit of China Society of Science and Technology Information and Beijing Engineering Consulting Association, and the Ministry of Finance. "PPP Consulting Warehousing Agency", Beijing Zhongguancun High-tech Enterprise, Shangpu Consulting has become one of the leaders in the field of domestic investment, financing and M & A consulting.

As one of the first domestic professional institutions to engage in IPO listing consulting since the opening of the-share gem in 2009, Shangpu's listing consulting business has been in the leading position in the market all the year round, firmly at the head of the industry, and has always been one of the IPO, M & A and refinancing feasibility study consulting institutions with the largest number of declared projects accepted by the China Securities Regulatory Commission. It has been selected as the "pioneer institution of IPO consulting industry" by the International Finance ", it has become one of the largest IPO consulting agencies in China recognized by the capital market, and is the first professional IPO consulting agency in the country to obtain the Grade A qualification for the preparation of fundraising reports.

Shangpu Consulting has rich experience and professional team in the field of business due diligence, and can provide customers with comprehensive, in-depth, objective and accurate business due diligence services, including but not limited to the following aspects:

-Market analysis: analyze the scale, structure, growth, trend, demand, competition, etc. of the industry and market in which the target company is located, and evaluate the market position and potential of the target company;

-Business analysis: analyze the characteristics, advantages, defects, innovation, technology, quality, price, sales, channels, customers, suppliers, etc. of the target company's main products or services, and evaluate the target company's business capabilities and efficiency;

-Financial analysis: analysis of the target company's financial statements, financial indicators, financial policies, financial risks, etc., to assess the target company's financial position and profitability;

-Legal analysis: analysis of the target company's legal qualifications, legal documents, legal relationships, legal disputes, etc., to assess the target company's legal risks and compliance;

-Organizational analysis: analyze the organizational structure, staffing, personnel training, incentive mechanism, corporate culture, etc. of the target company, and evaluate the organizational effectiveness and human resources of the target company;

-Strategic analysis: analyze the strategic positioning, strategic objectives, strategic implementation, strategic evaluation, etc. of the target company, and evaluate the strategic rationality and sustainability of the target company.

In the business due diligence service, Shangpu Consulting not only provides the collection and collation of data and information, but also provides professional analysis and suggestions to help customers fully understand the advantages and disadvantages of the target company, find potential opportunities and threats, formulate appropriate investment strategies and plans, and maximize the investment value.

The commercial due diligence service of Champu Consulting covers many industries and fields, including but not limited to the following typical cases:

-Case 1: A well-known international investment institution makes commercial due diligence on a large e-commerce platform in China. Champ Consulting provides the investment institution with a full range of commercial due diligence services, including market analysis, business analysis, financial analysis, legal analysis, organizational analysis and strategic analysis of the target company, as well as the evaluation and recommendation of the target company's business plan. The business due diligence report of Shangpu Consulting provides the investment institution with detailed data and information, as well as professional analysis and opinions, which helps the investment institution to have a clear understanding of the value and prospects of the target company and provides strong support for its investment decision-making.

-Case 2: A well-known domestic pharmaceutical company's commercial due diligence on a biotechnology company in China. Shangpu Consulting provides professional commercial due diligence services to the pharmaceutical company, including market analysis, business analysis, financial analysis, legal analysis, organizational analysis and strategic analysis of the target company, as well as the evaluation and recommendation of the target company's technological innovation capability and product development progress. The business due diligence report of Shangpu Consulting provides the pharmaceutical enterprise with in-depth data and information, as well as professional analysis and opinions, which helps the pharmaceutical enterprise to have a full understanding of the target company's technology and products, and provides an effective reference for its merger and acquisition decision.

-Case 3: A well-known domestic education group's commercial due diligence on an online education platform in China. Shangpu Consulting provides professional business due diligence services to the education group, including market analysis, business analysis, financial analysis, legal analysis, organizational analysis and strategic analysis of the target company, as well as assessment and recommendations on the quality of teaching and user satisfaction of the target company. The business due diligence report of Shangpu Consulting provides the education group with comprehensive data and information, as well as professional analysis and opinions, which helps the education group to have an accurate judgment on the education model and market prospect of the target company, and provides a strong basis for its investment decision-making.