The main contents include:
1. Reviewing the financial statements and other legal, financial and business information provided by the project company to find out the key and significant influencing factors.
2. Analytical procedures to analyze the information obtained from various sources, such as banks, tax, accounting firms, industry experts, public statements of listed companies in the same industry, and industry research reports, to identify anomalies and major issues, such as trend analysis, structural analysis, etc.
3. Interviews and full communication with all levels and functions within the enterprise, as well as other relevant internal and external personnel; visits and consultations with downstream customers, upstream suppliers, and competitors of the project company.
4, querying and reviewing industry associations and other meetings, industry journals, industry reports and other information for comparison.
5, communication within the group members of the investigation team from different backgrounds and specialties, their mutual communication is also a way to achieve the purpose of the investigation.
Expanded Information:
Due diligence work requires clarity on the focus of due diligence
For example, what is the client's purpose for working together? Clarifying the client's business purpose is the starting point for lawyers to provide due diligence work. In addition, the target company belongs to what type of business? A real estate development company? A technology company? A manufacturing company?
Different types of businesses have different business values and different potential risks. For a real estate development company, land, construction in progress, property and buildings may be its main assets;
while its main risk may lie in whether the project has legal construction procedures, whether there are disputes during the construction contract performance. If the target enterprise belongs to a technology company, the focus of due diligence is mainly on the use of relevant intellectual property rights, security, and proof of ownership. It can be seen that due diligence work needs to be tailored to the body, there is no one-size-fits-all due diligence outline.
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