Due diligence

Due diligence is an important data collection link that allows investors to evaluate the target trading company and its assets before conducting a transaction. It helps investors have a deeper understanding of the target company’s financial status and risks, thereby reducing risks and Achieve a successful transaction.

 

The scope of due diligence includes:

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• Conduct financial data analysis, review financial statements and all related accounting records

• Check the statutory records and tax related matters of the target acquisition company

• Review major contracts or agreements

• Review the relationship and transactions with other related parties/companies

• Field inspection and inventory

• Prove relevant working capital, including the existence, ownership and value of current assets and debts

• Prove that financial data is recorded truthfully, accurately and reasonably

• Identify potential issues in the transaction, any unrecorded and undervalued debts, and unpaid commitments

• Assess the credibility of the target acquisition company