Project background:

An investment company plans to make an equity investment in a liquor company. The company mainly produces and sells liquor. Its products cover high-end, mid-end and low-end markets and have multiple well-known brands. The company has shown strong competitiveness and growth potential in the liquor market in recent years, but it is also facing multiple challenges such as industry competition, policy supervision, and consumption upgrades.

Customer pain points:

Before making an investment decision, an investment company needs to conduct a comprehensive, in-depth and objective assessment of the operating status, financial status, market status, and risk status of the liquor company to determine the investment value and risk return. At the same time, the investment company also needs to understand the future development strategy, competitive advantage and growth space of the liquor enterprise, so as to formulate reasonable investment plan and cooperation mode.

Project purpose:

In July 2023, Shangpu Consulting was entrusted by the investment company to provide professional wine industry investment due diligence services, aiming to help the investment company fully grasp the internal and external situation of the wine enterprise, assess its investment value and risk level, and provide effective investment advice and strategies.

Research object:

The research objects of this project include the following three categories:

-The management, core employees, major suppliers, major customers, etc. of the liquor company;

-The industry environment, market environment and competitive environment of the liquor enterprise;

-Potential partners, potential competitors, potential risk factors, etc. of the liquor company.

In this project, about 50 interviews and surveys were conducted on the above three types of objects.

Project Content:

The project mainly includes the following four aspects:

-Operational due diligence: by investigating the organizational structure, management team, human resources, production and operation, sales channels, brand image, R & D and innovation of the liquor enterprise, evaluate its operational efficiency and effectiveness, identify its operational advantages and disadvantages, and put forward suggestions for operational improvement and optimization.

-Financial due diligence: By reviewing the financial statements, audit reports, tax reports and other documents of the liquor enterprise, investigating its financial position, financial indicators, financial risks, etc., assessing its financial soundness and profitability, and making financial monitoring and regulatory recommendations.

-Market due diligence: by collecting and investigating the industry data, market data, competition data and other information of the liquor enterprise, it evaluates its market size, market share, market growth rate, market trend, etc., identifies its market opportunities and threats, and puts forward suggestions for market expansion and differentiation.

-Risk due diligence: by identifying and investigating the policy and regulatory risks, industry competition risks, product quality risks, supply chain risks, customer satisfaction risks, etc. faced by the liquor company, assess its risk exposure and risk response capabilities, and propose risk prevention and control recommendations.

Project Value:

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

-Provide investment companies with a comprehensive, in-depth and objective wine industry investment due diligence report to help them fully grasp the internal and external conditions of the wine company, and provide strong support and basis for their investment decisions.

-Provide effective investment advice and strategies for investment companies, help them determine investment value and risk return, formulate reasonable investment plans and cooperation models for them, and provide guidance and guarantee for them to achieve investment objectives and returns.

-Provide continuous tracking and consulting services for investment companies to help them keep abreast of the latest developments and changes in the liquor company, adjust their investment plans and strategies in a timely manner, and provide help and support for their effective management of investment risks and crises.

-It provides a platform for Shangpu Consulting to show its professional ability and level, helps it establish a good brand image and reputation, and provides conditions and advantages for it to expand more customer resources and cooperation opportunities.