Abc Company M & A Financial Due Diligence Practice

Resulting from the rapid growth of Chinese economic and globalization, more and more foreign investors enter Chinese market. One of the best efficient ways is mergers and acquisitions (M&A). China has become one of the most important markets of in the world. The transaction of mergers and acquisitions is a complex system engineering project. The dealer increases its assets, income and competitive power through the transaction. However, M&A is also full of risk and trap. How to decrease the transaction risk and avoid the trap? To answer this question, financial due diligence, the protective umbrella of M&A is more and more important. This paper analyzes the key issues during the M&A transaction, on the stand of buyer, Target Company and intermediary agency. It also summarizes the key control points for intermediary agency for conducting the financial due diligence, to convey the significant risk and trap to the buyer.This paper adopted the practical case of the financial due diligence of ABC Company before its M&A transaction. After the case study, it summarize the key issues for intermediary agency conducting the financial due diligence, discussing the reason of M&A, the growth, profit trend and valuation of the target company. It also analyzes the major findings during the financial due diligence for ABC Company before its M&A, thinks the limitation of financial due diligence conducted in this case. Those practical experience may help conduct financial due diligence for M&A in the future.