Project background:

The foundry industry refers to the industry that provides customers with outsourcing services in the production, processing or operation of products or services, mainly including semiconductor foundry, electronic foundry, pharmaceutical foundry, automotive foundry and other fields. The foundry industry has the characteristics of capital and technology intensive, obvious scale effect and fierce market competition, which can reduce costs, improve efficiency and focus on core business for customers; for foundry enterprises, they can make use of their own advantages, expand market share and improve profitability.

The global foundry market will reach $1.2 trillion million in 2019, with the semiconductor foundry market at $107.2 billion, the electronics foundry market at $530 billion, the pharmaceutical foundry market at $150 billion, and the automotive foundry market at $230 billion. The global foundry market is expected to grow to $1.6 trillion by 2024, with a compound annual growth rate of 6%.

China is one of the world's largest foundry markets, with a size of about $300 billion billion in 2019, accounting for 25% of the global market share. Among them, the semiconductor foundry market is 22 billion US dollars, accounting for 21% of the global market share; the electronic foundry market is 200 billion US dollars, accounting for 38% of the global market share; the pharmaceutical foundry market is 20 billion US dollars, accounting for 13% of the global market share; the automotive foundry market is 58 billion US dollars, accounting for 25% of the global market share. It is estimated that by 2024, the size of China's foundry market will grow to $400 billion, with a compound annual growth rate of 7.5 per cent.

A PE institution is a private equity investment institution focusing on investing in high-tech fields, with rich industry experience and resources. The agency found a leading domestic comprehensive foundry company (hereinafter referred to as the target company). The company is involved in foundry services in various fields such as semiconductors, electronics, medicine and automobiles. It has advanced technology, equipment and management, and has strong Competitiveness and growth potential. The agency developed a strong investment interest in the target company and decided to invest in it as much as possible.

Customer pain points:

As a professional investment institution, a PE institution needs to conduct a comprehensive, in-depth, objective and accurate evaluation and research on the target company before making investment decisions to determine its value, risks and returns, and formulate reasonable investment strategies and programs. However, as the target company is involved in many fields and industries, its business is complex and diverse, involving a variety of technical, legal, financial, tax, market and other issues, it needs professional knowledge and experience to carry out effective due diligence. In addition, since the target company is a private enterprise, there may be opaque or incomplete information disclosure, which requires a variety of channels and means to obtain true and reliable information. As a result, a PE organization faces the following major customer pain points:

-How to conduct systematic, detailed and consistent due diligence on multiple business lines of the target company to fully understand its business model, market position, competitive advantage, profitability, growth potential, etc.

-How to conduct in-depth research on the multiple industries involved in the target company to accurately grasp its industry characteristics, development trends, market size, competitive landscape, policy environment, etc.

-How to evaluate the technical level, intellectual property rights, research and development capabilities of the target company in order to judge its technological innovation and competitiveness.

-How to conduct a rigorous audit of the target company's legal compliance, financial situation, tax risks, etc. to identify and avoid its potential legal and financial risks.

-How to obtain and verify the information of the target company through third-party verification, market research, interviews with industry experts, etc., in order to improve the authenticity and effectiveness of due diligence.

Project purpose:

In order to solve the pain points of customers, Shangpu Consulting Company provides a one-stop investment due diligence service for a PE organization, aiming to help customers achieve the following purposes:

-Comprehensive grasp of the target company's business status, including its business scope, product structure, customer distribution, supply chain management, operational efficiency, quality control, etc;

-In-depth research on the industry environment of the target company, including its industry characteristics, development history, market size, growth drivers, competitive landscape, policy impact, etc;

-Professional evaluation of the technical strength of the target company, including its technical level, intellectual property rights, research and development capabilities, technological innovation, technological transformation, etc;

-Strictly review the legal compliance of the target company, including its legal status, equity structure, major contracts, litigation and arbitration, compliance risks, etc;

-Detailed review of the financial position of the target company, including its financial statements, revenue structure, cost structure, profit level, assets and liabilities, cash flow, etc;

-Accurately verify the authenticity of the target company's information, and obtain and verify the relevant information of the target company through third-party verification, market research, interviews with industry experts, etc., in order to improve the authenticity and effectiveness of due diligence.

Research object:

-Target company: As the core object of this project, it needs to conduct all-round due diligence, including in-depth interviews with its management and key personnel, obtaining its internal information and data, and conducting on-site inspections and observations to understand its actual operations.

-Industry Association: As an industry authority, you can obtain industry-related data and information, and understand industry development trends and policy impacts.

-Industry experts: As a person with rich knowledge and experience in the industry, you can obtain industry-related insights and suggestions, and understand the internal dynamics and competition of the industry.

-Competitors: As other participants in the target company's industry, you can obtain competition-related data and information, and understand the strengths and weaknesses of competitors.

-Customer: As a demander of the target company's products or services, you can obtain customer-related data and information from it, and understand customer satisfaction and loyalty.

Supplier: As a product or service provider of the target company, you can obtain supplier-related data and information from it, and understand the supplier's cooperation and trust.

Third-party institutions: as the target company's information and data verifier, you can obtain data and information related to third-party institutions, and understand the independence and professionalism of third-party institutions.

Project Content:

The contents of this project mainly include the following aspects:

Business due diligence: conduct a comprehensive survey of the target company's business, including its business scope, product structure, customer distribution, supply chain management, operational efficiency, quality control, etc., to assess its business model, market position, competitive advantage, profitability, growth potential, etc.

Industry due diligence: conduct in-depth research on the industry environment in which the target company operates, including its industry characteristics, development history, market size, growth drivers, competitive landscape, policy impact, etc., in order to grasp its industry trends and opportunities.

Technical due diligence: professionally evaluate the technical strength of the target company, including its technical level, intellectual property rights, research and development capabilities, technological innovation, technological transformation, etc., to judge its technological competitiveness and risks.

Legal due diligence: a rigorous review of the target company's legal compliance, including its legal status, shareholding structure, material contracts, litigation and arbitration, compliance risks, etc., to identify and avoid its potential legal risks.

Financial due diligence: a detailed review of the target company's financial position, including its financial statements, revenue structure, cost structure, profit level, assets and liabilities, cash flows, etc., to determine its financial value and risk.

Information verification: obtain and verify relevant information of the target company through third-party verification, market research, interviews with industry experts, etc., in order to improve the authenticity and effectiveness of due diligence.

Project Value:

This project provides a one-stop investment due diligence service for a PE institution and provides strong support and basis for its investment decision-making. This project has the following aspects of value:

Provide customers with a comprehensive, in-depth, objective and accurate target company evaluation report to help customers fully understand the target company's business status, industry environment, technical strength, legal compliance, financial status, etc., as well as its value, risks and benefits.

Provide customers with professional, detailed and consistent due diligence methods and processes to help customers systematically conduct multi-dimensional and multi-level due diligence on the target company, as well as effectively obtain and verify relevant information about the target company.

It provides customers with rich, reliable and timely industry data and information to help customers in-depth research on the industry characteristics, development trends, market size, competitive landscape, etc. of the target company, as well as to grasp industry opportunities and challenges.

Provide customers with expert-level technical assessment and legal review to help customers professionally assess the target company's technical level, intellectual property rights, research and development capabilities, etc., as well as strictly review the target company's legal status, shareholding structure, major contracts, etc., to determine its technical competitiveness and legal risks.

Provide customers with a detailed, transparent and standardized financial review to help customers review the target company's financial statements, revenue structure, cost structure, profit level, balance sheet, cash flow, etc. in detail to determine its financial value and risk.

It saves time, cost and resources for customers, helps customers efficiently complete the investment due diligence work, and improves the investment efficiency and return.