Commercial Due Diligence (CDD) refers to the systematic, detailed and objective investigation and analysis of the internal and external environment and situation of the target company by a professional management and consulting team after the investor has reached an initial cooperation intention with the target company, so as to evaluate the business prospects, competitive advantages, risk factors, growth potential, etc. of the target company, and provide the basis for value judgment and risk control for investment decision-making. Commercial due diligence usually needs to be done at the same time or in preference to financial and legal due diligence in order to avoid transaction failures or losses due to commercial problems.

The main contents of commercial due diligence include the following aspects:

-Market analysis: analyze the market size, growth rate, structure, trends, needs, competition, opportunities and threats of the target company, and assess the market position and share of the target company, as well as the attractiveness and sustainability of the market.

-Competitive analysis: analyze the business model, products or services, market strategy, strengths and weaknesses, financial situation, market performance, etc. of the target company's main competitors, and assess the competitiveness and differentiation of the target company, as well as the impact and changes in the competitive environment.

-Business analysis: analyze the target company's business processes, organizational structure, human resources, technical capabilities, operational efficiency, quality control, innovation capabilities, customer relationships, supply chain management, etc., and evaluate the target company's business stability and profitability, as well as business strengths and weaknesses.

-Financial analysis: analyze the target company's financial statements, financial ratios, financial forecasts, assets and liabilities, cash flow, cost structure, profit model, return on investment, etc., and assess the target company's financial position and risks, as well as the financial rationality and credibility.

-Legal analysis: Analyze the target company's legal documents, contracts, licenses, patents, trademarks, litigation, compliance, etc., and assess the target company's legal risks and liabilities, as well as the integrity and effectiveness of the law.

The main purpose of commercial due diligence is to provide investors with value in the following areas:

-Validate the business plan and expected returns of the target company and determine the reasonableness and feasibility of the investment.

-Identify the business risks and problems of the target company and develop risk aversion and solutions.

-Discover the business opportunities and potential of the target company and develop value-added and improvement solutions.

-Provide investors with strong bargaining chips and advice to help them reach the best trading conditions and prices.

The main methods of commercial due diligence include the following:

-Desktop research: by collecting and analyzing the public information and data of the target company, such as official website, news, reports, research, database, etc., to obtain the basic situation and industry background of the target company.

-Field visits: by personally or entrusting third-party agencies to the target company's factories, warehouses, stores, offices and other places to conduct field visits to observe the actual operating conditions and facilities of the target company.

-Interview survey: Through interviews or questionnaires with the management, employees, customers, suppliers, competitors, industry experts and other relevant personnel of the target company, to obtain first-hand information and opinions of the target company.

-Data analysis: Through the use of statistical, financial, economic and other analytical tools and models, the target company's data to organize, compare, calculate, forecast, etc., to draw quantitative assessment and conclusions of the target company.

Shangpu 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 was established in early 2008, formerly known as Beijing Shangpu Information Consulting Co., Ltd. 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.

Champ Consulting provides the following professional services in the field of commercial due diligence:

-Market research consulting: Provide customers with industry research, market segmentation and user behavior research, channel model research, competitor research, market entry research, consumer research and other segmentation consulting services to help customers fully understand the market environment and opportunities, and formulate effective market strategies and marketing programs.

-Investment decision consulting: to provide clients with investment risk assessment, investment project feasibility study, investment return analysis, investment decision-making advice and other consulting services, to help clients assess the value and risk of investment, to develop a reasonable investment plan and budget.

-IPO listing consultation: provide customers with consulting services such as IPO preparation, IPO project management, IPO commercial due diligence, IPO financial due diligence, IPO legal due diligence, IPO listing guidance, etc. to help customers successfully complete all aspects of IPO listing and maximize enterprise value.

-M & A and restructuring consulting: to provide clients with strategic planning, M & A and restructuring project search, M & A and restructuring business due diligence, M & A and restructuring financial due diligence, M & A and restructuring legal due diligence, M & A and restructuring transaction structure design, M & A and restructuring transaction execution and other consulting services to help clients achieve the goals and benefits of M & A and restructuring.

Champ Consulting has a number of success stories in the field of commercial due diligence, some of which are typical:

-Case 1: An internationally renowned investment institution conducts commercial due diligence on a leading online education platform in China. Shangpu Consulting provides comprehensive commercial due diligence services for the investment institution, including in-depth analysis and evaluation of the target company's market, competition, business, finance, law, etc., as well as objective judgment and suggestions on the target company's growth potential, competitive advantage, risk factors, investment value, etc. The business due diligence report of Shangpu Consulting provides strong decision-making support for the investment institution, helps it successfully complete the investment in the target company, and achieves a win-win situation for both parties.

-Case 2: A well-known domestic auto parts manufacturer makes an acquisition of a European auto parts manufacturer. Shangpu Consulting provides professional M & A and restructuring consulting services to the domestic enterprises, including commercial, financial, legal, transaction structure design, transaction execution, etc., as well as post-merger integration plan and effect evaluation. The M & A consulting service of Shangpu Consulting provides effective M & A plans and implementation guidance for the domestic enterprises, helps them successfully complete the M & A of the target enterprises, and realizes the internationalization and scale of the enterprises.

-Case 3: Preparation of a leading domestic Internet financial platform for listing on NASDAQ in the United States. Shangpu Consulting provides professional IPO listing consulting services for the Internet financial platform, including research on the target market, analysis of listing requirements, optimization of business model, collation of financial statements, review of legal documents, and assistance in listing counseling. The IPO listing consulting service of Shangpu Consulting provides comprehensive listing preparation and execution for the Internet financial platform, helping it successfully land on NASDAQ in the United States and become a leading enterprise in China's Internet financial industry.

The above are some of the professional services and success stories of Shangpu Consulting in the field of commercial due diligence. It can be seen that Shangpu Consulting has the following advantages in the field of commercial due diligence:

-Professional team: Shangpu Consulting has a professional team composed of industry experts, market researchers, financial analysts, legal advisers, etc., with rich industry knowledge, market experience, analytical capabilities and consulting skills, and can provide customers with high-quality Business due diligence services.

-Customer resources: Shangpu Consulting has a wide range of customer resources, including well-known domestic and foreign investment institutions, listed companies, small and medium-sized enterprises, government agencies, etc., which can provide customers with diversified business due diligence needs and opportunities.

-Scope of services: Shangpu Consulting provides a full range of commercial due diligence services, covering market research, investment decision-making, IPO listing, mergers and acquisitions and other fields, and can provide customers with one-stop commercial due diligence solutions.

-Innovation ability: Champ Consulting has strong innovation ability, can design and implement the most suitable business due diligence scheme according to the different needs and characteristics of customers, and deal with various complex and challenging business problems, so as to provide customers with the best business due diligence results and suggestions.

In short, Shangpu Consulting is a leading business due diligence service provider in China, providing professional support and guarantee for customers' investment decisions, and providing powerful impetus and assistance for customers' business development. By introducing the business due diligence services and cases of Shangpu Consulting, this article aims to provide readers with some practical experience and enlightenment of business due diligence to help them make more wise and reasonable choices in investment decisions.