Project background:

A civil explosive company is a listed company specializing in the production and sales of civil blasting equipment. It has multiple production bases and sales outlets. Its products cover industrial explosives, detonating equipment, detonating cords and other varieties, and are widely used in mining, Infrastructure construction and other fields. The company plans to expand market share, enhance industry competitiveness and achieve high-quality development through mergers and acquisitions.

Customer pain points:

Before the merger and reorganization, the enterprise needs to conduct a comprehensive investment due diligence on the target enterprise, evaluate its financial situation, operating conditions, market prospects, risk factors, etc., in order to determine the rationality and feasibility of the merger and acquisition plan. However, the company lacks a professional investment due diligence team and methods, and cannot effectively collect, investigate and verify the relevant information of the target company, and it is difficult to make scientific decisions.

Project purpose:

In August 2023, the company commissioned Shangpu Consulting to provide it with investment due diligence services to help it fully understand the target company, assess its value and potential, identify possible risks and problems in the merger, and propose reasonable merger recommendations and strategies.

Research object:

The research object of this project is the target enterprise and its related parties, including:

-Management, core employees, shareholders, etc. of the target company

-Main customers, suppliers, competitors, etc. of the target enterprise

-Regulatory agencies, industry associations, experts and scholars of the industry in which the target enterprise is located

Project Content:

The main contents of this project include:

-Conduct financial due diligence on the target enterprise, review its financial statements, accounting policies, internal controls, etc., investigate its financial position, profitability, cash flow and other indicators, and assess its asset quality, liability level, tax risk, etc.

-Conduct commercial due diligence on the target company, investigate its business model, product structure, market positioning, etc., investigate its market share, customer relationship, supply chain management, etc., and evaluate its market prospects, competitiveness, growth potential, etc.

-Conduct legal due diligence on the target company, check its legal documents, contractual agreements, intellectual property rights, etc., and investigate its legal status, compliance, litigation risks, etc.

-Conduct environmental due diligence on the target company, inspect its production sites, equipment and facilities, safety management, etc., and investigate its environmental impact, safety hazards, social responsibilities, etc.

-Conduct human resources due diligence on the target enterprise, understand its organizational structure, staff size, salary and benefits, etc., and investigate its talent reserve, staff stability, incentive mechanism, etc.

-Conduct technical due diligence on the target enterprise, evaluate its technical level, innovation ability, R & D investment, etc., and investigate its technical advantages, core competitiveness, technical risks, etc.

Project Value:

-Provide customers with a comprehensive and in-depth research report on the target enterprise, revealing the real value and development potential of the target enterprise.

-Provide customers with objective and professional M & A suggestions and strategies, point out the possible risks and problems in M & A, as well as countermeasures and solutions

-Provide customers with efficient and considerate investment due diligence services, saving customers' time and cost, and improving customers' decision-making confidence and satisfaction

-Provide good performance and reputation for Shangpu Consulting Company, demonstrate the professional ability and industry influence of Shangpu Consulting Company in the civil explosion industry, and enhance the cooperative relationship and loyalty between Shangpu Consulting Company and customers