Position:Home > About Us > News
News
Company profile
Company advantages
Our customers
News
Contact Us
What are the pitfalls of due diligence?
 
In the daily business activities of enterprises, investment and financing are essential.
When investing and borrowing money, we have a job to do, that is, due diligence, but some enterprises, investigation, not due diligence, stepped on a lot of pits. Today we're going to talk about those due diligence holes.
Because the investment situation is slightly more complicated, accounting firms, law firms, and evaluation agencies are generally hired to participate, and the boss also attaches great importance to it. We're mainly talking about the loan due diligence hole.
01 Appearance image pit
When you go to the best, you often hear: we are state-owned enterprises, we are listed enterprises, management is very standardized, you rest assured.
But that's not necessarily the case.
Both state-owned enterprises and listed enterprises have also had many problems, such as Shanghai Electric.
On the evening of May 30, 2021, Shanghai Electric disclosed a major risk warning announcement that the accounts receivable of Shanghai Electric Communication Technology Co., LTD., a holding subsidiary within the scope of the company's consolidated statements (Shanghai Electric holds 40% of the equity) were generally overdue, and there was a large amount of accounts receivable that could not be recovered
There is the enterprise in the city center of a landmark building high, a into the office, like entering the president's office, very luxurious style, while the head of the enterprise also like to talk about politics, which big leader he knows, which big leader is his brother, etc., this kind of enterprise should also pay more attention to, pit a lot of enterprises. When you are finished borrowing money, go again, the house is empty. There's a lot of news like this.
02 Gorgeous report pit
The statement provided to you is very beautiful, the total assets, sales revenue, profits are very considerable, tens of billions, hundreds of millions. However, it can not withstand scrutiny and deep digging, such as buying social security and paying salaries only a few people; Although it is a production enterprise, it pays little water and electricity bills and has a mountain of warehouse products. Accounts receivable, prepaid accounts are particularly large, which may have problems, the need for comprehensive analysis.
03 Fake data pit
Send the list of due adjustment information, provide like squeezing toothpaste, urge a little, and provide a little, find a variety of reasons, a business trip, a person who is not in charge of information, an audit in the company audit and so on.
The information provided, as long as a careful look, found rough, wrong, especially hundreds of millions of dollars of large contracts, one page, two pages, signed only a chapter, no other information.
Industry situation, market situation, it is found that it is all nonsense, that is, download on the Internet to change the name.
04 Dig the pit by your own team
Recently, the Internet reported that "post-90s employees accepted sex bribes, went through the motions of due diligence, resulting in a company loss of 20 million yuan was sentenced" news.
In reality, there may be many such cases, but they are not reported or companies do not put into law.
At this time, the weakness of human nature is fully exposed. In the face of interests, in the face of temptation, how many people can resist?
There is also the team sent to go to the scene, the people to look for, the data to be collected, but did not find the problem, or did not trace the suspicious places found in depth, active thinking, analysis is not enough, just cope with the errand.
For example, when talking with the legal representative, I found that there were hesitations and hesitations, and there was no alarm. A group company, subsidiaries, parent companies, actual control enterprises are together, to provide you with information and materials, are so few people, which may have a secret.
In addition to routine due diligence data, it is crucial to conduct background checks on the actual controller of the company, including his reputation, reputation, etc., which is related to the success or failure of the project
So how do we know who's actually in control? Not to see the legal representative of the business inquiry, shareholders, but to see who the people of the company listen to the instructions? This takes work.
05 Avoid it in terms of personnel selection
The pits listed above all require our due diligence team to be professional, experienced, loyal to the enterprise, and do a good job in selecting and employing people. Of course, a good system design is also very important.
First, choose solid, loyal employees and change them frequently
The due diligence team is preferably composed of 2-3 people, which reduces the risk of crime and can complement each other professionally, such as drawing in legal, financial, and marketing professionals. The team should not be solidified, and the composition of different personnel can be changed each time.
Second, the project manager invests
If the project manager will brag about the project, there is no flaw, you can let the project manager with 10% or 20%, with this system, the project manager will seriously measure, not so sloppy.
Third, performance orientation
Some enterprises in the performance incentive, in order to timely incentive, after the project landing to reward the team, under this guidance, the team has the motivation to report good news rather than bad news, not bad news or choose one or two bland news report.
It is best to give incentives after the end of the project and the fund is safe, or give incentives according to the progress of the project in a certain proportion, such as 10% at the time of landing, 20% per year, 70% at the end of the project and other system design.
Fourth, report crimes to the police in time
In the follow-up management of enterprises, if employees are found to have criminal malfeasance, they should report to the police in time to make an example of others, especially financial or similar financial enterprises, to avoid more people repeating the mistake.
What are the pitfalls of due diligence?
 
[This information has already been had a look around times!]

[CLOSE]

Service Hotline
[Shanghai]
+0086-21-50681768
[Suzhou]
+0086-4000-067-386
E_mail:
chnaugus@gmail.com
News
How should foreign trade enterprises be ...
The latest trade fraud, some enterprises...
Foreign trade mail fraud is rampant, cro...
 
 
Investigation
Fraud and internal investigation
Network survey
Asset search and recourse
Supervision
Investigation of the abuse of intellectual property rights
Commercial litigation and support
Investigation of insurance fraud
Investigation of staff fraud
Business intelligence
Enter the market
Competitor information collection
Business due diligence
Staff background survey
Background investigation Range
Introduction of service
Case analysis
Diligence solution
Commercial background diligence
Intensive diligence
Third parties and supplier screening
Compliance policy process consultation
 
Copyright ©2003-2023 Shanghai AoZhi Enterprise Management Co., Ltd. All Rights Reserved.