Due Diligence in China

Before you embark into your China merger, acquisition, joint venture or any type of investment deal, it is important to conduct a thorough due diligence on your future business partner. The legal, commercial and financial due diligence will help you avoid pitfalls and uncover critical information such as:
-Incorporation status and history of the Chinese company.
-Chinese company ownership structure and affiliated companies.
-True revenue estimates of the Chinese partner and market position in the industry.
-Background checks and experience/competence/credentials of the Chinese company ownership, management and key personel.
-Real market values of land, fixed assets brought in the JV deal by your Chinese partner.
-Main suppliers, clients, lenders and business partners of the Chinese companies.
-Loopholes in the Chinese partner accounting system and accuracy of the accounting statements.
-Existing short-term and long-term liabilities at Chinese partner.
-Non-cash compensation (such as use of company vehicles, property etc.) by management/staff and/or their families.
-Pending disputes and litigations faced by the Chinese partners.
-Potential technical, legal, financial and institutional risks in regard to the product or industry entered.
-Hidden information that could negatively impact the success of your proposed investment.

Sinoinvest Consulting provides professional due diligence services in mainland China. Having us conduct a due diligence on your behalf will be the best investment you would ever made in your China market entry preparation stage. With our due diligence report in your hand, you will have all the cards to negotiate a better agreement with your Chinese partner, and improve dramatically the chances of success of your investment in China.

While most of our due diligence projects are done at the market entry or pre-investment stages, Sinoinvest Consulting also provide ongoing due diligence services, on exising projects or companies/joint ventures already running in China, and are often commissionned by parent companies overseas who need a third party to report them regularly on their investment in mainland China