Research On Due Diligence Investigation Method Of Equity Investment

At present, the global capital market financing innovation constantly, especially the equity market has grown substantially. How to seize opportunities to develop with each passing day of equity market is our country investment professionals will face huge challenges. Equity investment is a long-term investment project, from the findings of the project, project investment to the final profit must go through a long process, in which there is a principal-agent risk, exit mechanism of risk and value assessment of risk. Enterprise or investors to reduce the risk of possible in equity investment, must adopt the effective method, to collect information about all aspects of the target enterprise, for effective due diligence, to determine whether the investment is appropriate, thus reducing the risks in the equity investment. Therefore, for China’s equity investment due diligence, help investors in equity investment object to carry out the due diligence investigation thought clear, process and steps, so as to better improve the effect of due diligence, thereby provide reference information for subsequent equity investment.Based on this, this paper collected the due diligence investigation of the basic theory of system, the Chinese equity investment due diligence investigation method as the research object, and as the breakthrough point, in-depth research of the due diligence system about the theory of literature, in-depth analysis of objective compared the similarities and differences on due diligence investigation methods at home and abroad, and through the Yunnan S tea co., LTD as an example analyzes the process of due diligence, steps and problems, thus to improve investors on the effects of equity investment to carry out due diligence work out effective countermeasures and Suggestions. Through research, the author draw the following conclusion:first, through analysis of due diligence investigation of relevant research at home and abroad, and that point was clear:both at home and abroad in due diligence research paradigm, research on the method is shown slightly insufficient, at the same time from the actual situation, the practice of due diligence to walk in front of the theory, the theoretical research success is not rich. Second, through the analysis of the due diligence investigation methods at home and abroad and the comparison, thus discovered that equity investors at home and abroad in terms of due diligence with common conventional methods, the conventional survey method to collect the basic information of the target enterprise, but the more it is worth noting that have different unconventional research methods at home and abroad, can reference each other, and thus more help to collect more comprehensive, has the hidden information. Third, by the yunnan S tea co., LTD as a case for empirical research, which has been clear about the domestic equity investors in the due diligence investigation of the basic procedures and methods, at the same time, we also found that there is a widespread data collection domestic equity investors is not comprehensive, high cost, object to solve the problem of limited aspects on the basis of these literature, comparative and empirical research, from the investigation procedure, method and management three aspects for equity investors in China provides practical advice on due diligence measures.