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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:

  • 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

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