Project background:

Shangpu Consulting Company is entrusted by an investment fund to make commercial investment in a washing products manufacturer (hereinafter referred to as the "target enterprise") to be acquired by it. The target enterprise mainly produces liquid detergent, washing powder and other products, the main sales channels for e-commerce platforms and supermarket chains. In recent years, the target enterprises have shown high growth rate and profitability in the washing products market, but they also face challenges such as fierce competition in the industry, fluctuations in raw material prices, and insufficient product innovation capabilities.

Customer pain points:

Before an investment fund decides whether to acquire a target company, it needs to conduct a comprehensive and in-depth assessment of the target company's business model, market position, competitive advantage, financial condition, risk factors, etc. to determine its investment value and return expectations. At the same time, the investment fund also needs to understand the development trend, market scale, competition pattern, consumer demand, etc. of the detergent industry in which the target company is located, in order to formulate a reasonable investment strategy and follow-up management plan.

Project purpose:

The business investment due diligence program of Champu Consulting aims to provide the following services to investment funds:

To conduct a comprehensive and systematic business analysis of the target enterprise, including its business model, product structure, sales channels, customer groups, supply chain management, cost structure, profitability, etc;

Conduct macro and micro-level market analysis of the detergent industry in which the target enterprise is located, including industry trends, market size and growth rate, market segmentation and share, competitive landscape and major competitors, consumer demand and preferences, etc;

A valuation analysis of the subject enterprise, including the selection of appropriate valuation methods and parameters, the calculation of its fair value range, and a comparative analysis of its comparable companies in the same industry;

Risk analysis of the target enterprise, including identifying the main internal and external risk factors that it may face, assessing its risk level and scope of impact, and proposing corresponding risk response measures and recommendations.

Research object:

In conducting business investment due diligence projects, Champ Consulting uses the following types of research objects:

Target enterprise: through interviews with the target enterprise's senior management, financial personnel, production personnel, etc., to obtain its operation and management, financial data, production process and other first-hand information, and through on-site inspection of its production equipment, warehouse inventory, product quality, etc., to verify its authenticity and effectiveness;

Upstream and downstream partners: through interviews with the main suppliers and customers of the target enterprise, to understand its cooperation history with the target enterprise, transaction characteristics, credit settlement period, product price fluctuations, etc., to assess its influence and dependence on the target enterprise;

Competitors: through interviews with the main competitors of the target enterprise, to understand its product structure, market share, competitive strategy, innovation ability, etc., to analyze its advantages and disadvantages and differentiation with the target enterprise;

Industry experts: Through interviews with industry experts, we can understand the development trend, market scale, competition pattern, consumer demand, etc. of the washing products industry, and obtain information and views on the macro and micro levels of the industry.

Project Content:

When the business investment due diligence project is carried out by Champ Consulting, it mainly includes the following aspects:

Business analysis: a comprehensive and systematic analysis of the business model, product structure, sales channels, customer groups, supply chain management, cost structure, profitability, etc. of the target enterprise, revealing its business characteristics and advantages;

Market analysis: macro and micro-level market analysis of the detergent industry in which the target enterprise is located, including industry trends, market size and growth rate, market segmentation and share, competitive landscape and major competitors, consumer demand and preferences, etc., to assess its market potential and competitiveness;

Valuation analysis: valuation analysis of the underlying enterprise, including selecting appropriate valuation methods and parameters, calculating its fair value range, and comparing it with comparable companies in the same industry to determine its investment attractiveness;

Risk analysis: risk analysis of the target enterprise, including identifying the main internal and external risk factors that may be faced, assessing the degree and scope of risk, and proposing corresponding risk countermeasures and recommendations.

Project Value:

Through the Business Investment due diligence program, Champu Consulting provides the following value to investment funds:

It provides investment funds with comprehensive and in-depth information and data on the target enterprises and their industries, helps them understand the operating conditions, market position, competitive advantages, financial situation, risk factors, etc. of the target enterprises, and provides strong support for their decision-making;

It provides an objective and reasonable valuation analysis of the target enterprise for the investment fund, helps it determine the appropriate purchase price and income expectation, and provides a favorable basis for its negotiation;

It provides targeted risk response measures and suggestions for investment funds, helps them avoid or reduce the risks they may face, and provides guidance for their subsequent management;

It provides investment funds with professional insights on the development trend, market scale, competitive landscape, consumer demand, etc. of the detergent industry, and helps them formulate reasonable investment strategies and follow-up management plans.