Before you invest · acquisitions and joint ventures

Due diligence on a Chinese target

You are buying or investing in a Chinese company and the accounts look fine. The question is whether they reflect reality. We test the areas where Chinese companies most often diverge from their reported numbers, and report in a format your investment committee can act on.

  • Revenue tested, not taken at face value — cut-off, recognition basis and whether the customers are real
  • Related parties found, not declared to us — we search for them rather than relying on what management lists
  • Tax and social insurance exposure quantified — the two liabilities that most often survive completion
  • English report built for a decision — findings ranked by materiality, with what they mean for price

Timing

Where diligence fits in your timetable

Diligence that starts after the term sheet is signed is diligence that cannot change the price. Earlier is cheaper and more useful.

Before the term sheet

A short review to decide whether the target is worth pursuing at all, and where the real risks sit.

Between term sheet and signing

The full review. This is the one that informs warranties, price adjustment and conditions.

Before completion

Confirming nothing material has changed, and that conditions have been satisfied.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Diligence report in English

Findings ranked by materiality, each with the evidence behind it and what it means for the deal.

Quality of earnings analysis

Reported profit restated onto a sustainable basis, with every adjustment explained.

Exposure quantification

Tax, social insurance and other exposures estimated as a number, not just flagged as a risk.

Related-party map

Every related party we identified, the nature of the relationship and the balances involved.

Recommended protections

What to ask for in the SPA: warranties, indemnities, price adjustment or conditions.

Management Q&A pack

The questions worth putting to management, with what a good answer and a bad answer look like.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about due diligence

How long does a review take?

It depends on the size of the target and how accessible the records are. We give you real dates in the first reply rather than a generic range.

Can you work to a tight deal timetable?

Yes, where the target produces documents quickly. The usual delay is document access, not the work itself.

What if the target will not give us certain records?

Tell us what is missing and we will say what we can still conclude, what we cannot, and what that gap is worth. An honest gap list is more useful than a clean report built on assumptions.

Do you report in English?

Yes. The report is written in English for your investment committee, and we can present it on a call if your committee wants to ask questions.

Will you sign an NDA?

Yes, as standard, and before any documents change hands.

Tell us about the target.

Sector, size, and where you are in the process. We will tell you what a review would cover and what it would cost, before you commit to anything.