Project background:

Shangpu Consulting Company is a consulting organization specializing in commercial investment due diligence business, providing comprehensive, in-depth and objective due diligence services for all kinds of investors.2023In 2000, Shangpu Consulting was commissioned by a well-known private equity fund to make a commercial investment in an explosion-proof electrical appliance manufacturing company it intends to invest in.

Customer pain points:

Explosion-proof electrical appliances refer to electrical appliances that can prevent explosion accidents in places containing flammable and explosive gases, flammable dust and other dangerous gases or mixtures. They are mainly used in petroleum, chemical, coal, natural gas and other fields. Explosion-proof electrical industry is a technology-intensive, high safety, stable market demand industry, with high investment value. However, due to the explosion-proof electrical industry involves many fields and industries, the market competition is fierce, the product quality is uneven, and the policies and regulations are constantly changing. Investors face many risks and challenges when making investment decisions. Therefore, customers need Shangpu Consulting to provide professional, comprehensive and detailed business investment due diligence services to help customers assess the market position, competitive advantage, financial situation, legal compliance and other aspects of the target enterprise, and formulate reasonable investment plans and risk control measures for customers.

Project purpose:

The purpose of this project is to provide customers with the following:

Basic introduction of the target enterprise, including historical evolution, organizational structure, management team, main products and services, etc;

Analysis of the development status and trend of the industry in which the target enterprise is located, including market size, market structure, market demand, market competition, policies and regulations, etc;

Analysis of the core competitiveness of the target enterprise, including product quality, technological innovation, brand influence, customer resources, channel network, etc;

Analysis of the financial position of the target enterprise, including financial statements, financial ratios, cash flow, profitability, solvency, etc;

Analysis of the legal compliance of the target enterprise, including the establishment and change of the company, the equity structure and change, major contracts and disputes, intellectual property rights and patents, etc;

Risk assessment and planning of the target enterprise, including market risk, technical risk, financial risk, legal risk, etc., and propose corresponding risk control measures and coping strategies;

The valuation model of the target enterprise is established and the investment proposal is put forward, according to the historical and forecast data of the target enterprise, the target enterprise is valued by appropriate valuation methods (such as price-to-earnings ratio method, market-to-sales ratio method, etc.), and reasonable investment plans and suggestions are given according to the valuation results and risk assessment.

Research object:

The research objects of this project include the following categories:

Internal personnel of the target enterprise, including senior management, heads of departments, core technical personnel, etc., understand the basic situation, business operation, management system, development plan, etc. of the target enterprise through interviews, questionnaires, etc;

External personnel of the target enterprise, including customers, suppliers, competitors, industry experts, etc., understand the market position, competitive advantage, customer satisfaction, supply chain stability, etc. of the target enterprise through interviews, questionnaires, etc;

Relevant documents and materials of the target enterprise, including industrial and commercial registration information, financial statements, legal contracts, patent certificates, etc., to understand the legal compliance, financial status and technological innovation capability of the target enterprise through review and analysis.

Project Content:

The main contents of this project are as follows:

Project start-up phase: communicate with customers to confirm project objectives, scope, timetable, resource allocation, etc., formulate project plans and work plans, determine research objects and methods, and collect preliminary information;

Project implementation phase: in accordance with the project plan and work plan, respectively, operational due diligence, financial due diligence and legal due diligence, collection and collation of various types of data and information, analysis and evaluation, the formation of preliminary conclusions and recommendations;

Project summary stage: according to the results of the project execution stage, write due diligence report, communicate and feedback with customers, revise and improve according to customers' opinions and suggestions, submit the final report, and provide follow-up support and services.

Project Value:

The value of this project is mainly reflected in the following aspects:

It provides customers with comprehensive, in-depth and objective business investment due diligence services of the target enterprise, helps customers fully understand all aspects of the target enterprise, and provides a strong basis and support for customers' investment decisions;

It reveals the development status and trend of the target enterprise's industry, as well as the market position and competitive advantage of the target enterprise in the industry, and provides valuable reference and guidance for customers to grasp the opportunities and challenges of the industry;

Assesses the various risks of the target enterprise for the customer, and puts forward the corresponding risk control measures and coping strategies, which provides effective protection and help for the customer to avoid and reduce investment risks;

A reasonable target enterprise valuation model is established for customers, and reasonable investment plans and suggestions are given, which provides scientific methods and ways for customers to maximize investment returns;

It provides customers with professional, efficient and considerate consulting services, establishes a good cooperative relationship and trust foundation with customers, and lays a solid foundation for more cooperation in the future.