IMPORTANCE OF DUE DILIGENCE IN CHINA:
As most people know, conducting a comprehensive due diligence is an essential step to ensure not only success in the China market, but also preventing outright failure. In comparison to the legal environment in more economically developed countries such as the United States or member countries of the EU, in which the accounting books and financial records of a company are somewhat reliable, Chinese companies often suffer from a lack of transparency and rigid organizational structure.
As a result, conducting due diligence must bear in mind such factors, and may require verification from two to three different sources (depending on the importance of the information).
At the outset of any investigation, a company must assess how risky/important this deal is to their company in terms of investment (of time, money, reputation, and other resources) as well as other factors such as the risk of IP misappropriation, etc. Once this is determined, a rough budget must be set. As a rough guide and although there are some who will state otherwise, a comprehensive legal due diligence for the purposes of a merger or acquisition will cost around US$10,000 and up, while a comprehensive accounting/financial due diligence will be slightly more.
We can deliver a dedicated, experienced due diligence team ready to serve you at any moment. The entire support team, tailored to your needs, will be coordinated by one partner, your single point of contact. Together we will determine the scope of our services.
We offer a broad range of services for business owners, executives,
and independent professionals. We are affordable, experienced, and friendly.
Please call us today at (852)2522-0816. We'll be happy to offer you a free initial consultation. Thanks for visiting!