Research Of Financial Due Diligence Based On Venture Capital

In recent years,the role of Venture Capital in promoting economic globalization has become increasingly prominent,related research has gradually increased at home and abroad.Venture capital is entirely profit-oriented,which can be a complex systematic project,when bringing opportunities and resource advantages,but also full of risks and even traps,and financial due diligence,act as an "umbrella" to escort venture capital,its importance has become increasingly prominent.Venture capital gradually play a pivotal role in China's economic development.First of all,venture capital has been accelerated the development of China's high-tech small businesses.In the "new normal" economy,to achieve the "Mass Innovation",the enterprise is still the main force of independent innovation,which high-tech small businesses is the strongest power among them,so the small&medium sized technological enterprises play a significant role in China's scientific and technology;Secondly,venture capital has been optimized the efficiency of resource allocation and accelerate industrial upgrading.Venture capital is an option,in this process of screening and comprehensive evaluation,fully embodies the "Darwinian" of market,improve the utilization of limited resources,handing capital and resources to competitive industries to promote industrial restructuring and upgrading.This paper discusses the critical control points,such as motivations of venture capital,market value of the investee,growth and profit prospects,unrecorded debt and the contingent liabilities based on the investment towards HD company which operated by TC venture capital firm.Summed up some key issues which accounting firms should be pay attention to based on the results of HD financial due diligence.This paper analyzes the key issues that should be considered by all parties in the process of venture capital investment from the position of investors,investees(target enterprises)and accounting firms.Give some suggestions on how to ensure authorized accounting firms to do a good job,find out the risks and issues venture and make them disclosed to change the information asymmetry before investment.The structure of this paper is as follows:Chapter One:Introduction;Chapter Two:Literature review and theoretical basis;Chapter Three:Summary of financial due diligence based on venture capital;Chapter Four:Research of Financial Due Diligence in HD Company on the View of Venture Capital.Due to the fact that due diligence is a complicated operation involving multi-disciplinary cross and restriction on capital,business level,investigation time and coordination degree of target enterprise.This paper also has a reflection on the experience summarized in practice,prepare each side for financial due diligence in future.