Financial and tax due diligence
Provide assistance to the customers when considering the accounting and tax problems involved in the potential transaction to minimize the risks in the transaction and yield higher returns.
The financial and tax due diligence includes,
Assess the investment structure to be traded;
Assess the assets and earnings quality;
Identify and quantify the implicit costs, commitment, contingent liability, tax risks, specific risks and opportunities for the industry and trade;
Evaluate the employee benefits, internal control structure, information technology system and risk management procedures;
Make the transaction price reasonable;
Commercial due diligence
Market; for example, identifying the driving factors of primary needs, market segmentation, variable driving factors, supervision, cost-driven factors, trends and other industry-related factors.
Competition; for example, identifying the critical success factors, the comparison between the target company and the competitors, consumer’s purchasing power, entrance barrier, supplier’s capabilities and alternative supplies etc.
Search the target company; for example, identifying, analyzing and screening the target companies in the specific industry to help the customers find the best investment target or business partners.
Company’s capability; for example, the business mode, strategy, core competence, potential opportunities and risks, helping the customers to establish themselves in the new field or found a joint venture; to review the business strategy, provide support in the business negotiation, project management and implementation.
Operation due diligence
Analyze all the objects in the value chain;
Analyze the influencing factors that might affect the feasibility of the trade;
Evaluate the risks that might exist;
Identify the synergy effect;
IT due diligence
Identify the potential impact of information system operation and technology on the trade;
Make plan for the information system integration;
Evaluate the existing information system;
Formulate the transition plan and project management proposal, review the information system organization structure and staffing etc.
HR due diligence
Identify the risks related to human resources;
Make preliminary diagnosis on the integration procedures before and after the combination;
Evaluate the compliance of the human resources, welfare and remuneration, employee motivation and fairness;
Please contact us if you have any question or request about the Financial due diligence