Research Of Financial Due Diligence Based On Equity Investment

Since the introduction of equity investment in China,with the continuous development of social economy,China's equity investment has been developed,investment scale continues to climb.Under the background of "mass undertaking and innovation",the government of our country has paid more attention to the technology innovation and the inspiring of talent entrepreneurship.As an investment tool to improve the development ability of enterprises,promote technological innovation and accelerate the strategic layout of enterprises,equity investment can not only provide funds for enterprises,but also make full use of social funds to become the sharp weapon of national economic development.But the equity investment also has the risk,may exist each kind of trap,once the equity investment failure,not only causes the enterprise assets the loss,also will affect the Prestige,to the company value growth extremely disadvantageous.Therefore,how to reduce the risk of equity investment to ensure the success of equity investment is important.Financial due diligence will play a crucial role in the success of equity investment.Effective financial due diligence can help equity investors understand the organizational structure,operating status,internal governance and financial situation of the target enterprise,which can reduce the potential risks in the equity investment and lay a solid foundation for the cooperation after the equity investment.This thesis takes financial due diligence as the main research content.This paper chooses H company to invest in a company,the financial due diligence cases,based on the research and analysis of relevant literatures at home and abroad,understand the development situation of equity investment,and focus on the main contents and the main value discovery function of financial due diligence.This paper probes into the specific contents of the financial due diligence,discusses the key concerns of the target enterprise's assets authenticity,profit authenticity,core competitiveness,enterprise capability,debt and contingent liabilities,and concludes that the equity investment plan of a company is feasible,And how to grasp the key risk control points in the financial due diligence,equityinvestment involved in all aspects of the key points of the analysis,in accordance with how the trustee to ensure the quality of financial adjustment,the discovery of internal potential risks and problems,and the implementation of equity investment in the premise of the supply of investment and other issues put This paper systematically expounds the practice process of financial due diligence before equity investment through theoretical contact with practical experience,which has important theoretical and practical significance.This paper consists of five parts.First is the introduction;And then there is the basis of the theory,including the definition of the relevant concepts: the third part of the analysis of the financial due diligence in the equity investment;And then analyzed a financial due diligence case for equity investments;Finally the fifth part of the paper's conclusions and prospects.Because due diligence is a multi-professional intersecting operation,the money,the business level,the time of the investigation and the amount of cooperation of the target enterprise,and so on,and so on and so on,and in the hopes of summarizing the experience of the practice,we are prepared to do a better job of doing financial due diligence in the future.