Due diligence

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We match our due diligence procedures to your specific needs. First, we will understand your investment, your objectives and your needs. We will then assist you in the entire transaction process and design due diligence procedures to meet these objectives. We often execute a wide range of due diligence activities, providing integrated services to our clients.

The integrated due diligence approach efficiently delivers a number of clear benefits:

  • A comprehensive and consistent set of results
  • An easy-to-use report which can seamlessly feed into the investment evaluation process
  • A reduced project management effort, and therefore greater focus on the deal at stake
  • Collaboration with PwC firms abroad for highest efficiency and quality for complex overseas M&A projects

Financial Due Diligence: We analyse and evaluate the current profitability, financial situation and cash flow conditions of the target business, and perform reasonable analysis of earnings forecast in the course of the deal. We also provide and insight into the business, legal and tax environment of the destination country, and review and analyse the holding structure of the investee or its parent company.

Tax Due Diligence: We analyse and assess the current enterprise tax status of the target company, and its potential tax risk for technical analysis and data calculations in the course of the transaction. We explain the tax system of the investee enterprise, review the tax declaration and other tax matters of the invested enterprise, provide suggestions to reduce the tax risk of the invested enterprise, and enhance the efficiency of its tax administration, to the extent possible.

Business Due Diligence: We assist our clients in evaluating the target company's market environment in its country and analysing its competitive position.

Operational Due Diligence: We assess the risks in the operational process of the target company and find ways to break cultural barriers and enhance operational efficiency opportunities.

IT Due Diligence: We identify potential IT system risks at the beginning of the transaction, assess the potential impact on business operations, and prepare for post-deal consolidation.

HR Due Diligence: We review human resources-related issues of the investee enterprise to identify the major risk issues related to the target country, including the employee compensation liabilities, pension plan, compliance with employee and labour regulations, and implementation of human resource retention and staffing programs. We help identify and assess the synergies, as well as the potential organisational and human resource risks and impact, and prepare for post-deal integration.

 

Contact us

Andrew Li
China Deals Domestic Leader
Tel: +[86] (21) 2323 3437
Email

Xun Tang
China Central Transaction Services Leader
Tel: +[86] (21) 2323 3396
Email

Roger Liu
Mainland China and Hong Kong Deals and Private Equity Leader, PwC Hong Kong
Tel: +[86] (21) 2323 3951
Email

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