The growing business demand globally would increase the risk of information asymmetry for all entities involved in the business activity, and in order to obtain as much information about the counterparts as possible from a third party for a better risk control management, due diligence investigation would be one of the options that business entity should consider in a way of cost-efficiency and time-efficiency, before the substantial business investment, and it would be also helpful for the business entity to decide the negotiation strategy.
Due diligence would be necessary if the company is considering or undertaking some business activities, including but not limited to the following scenario:
- When being invited to invest an existing business;
- When considering the merge and acquisition to another business;
- When deciding the bidding project;
- When developing a new authorized distributor;
- When choosing a new supplier;
- When recruiting a senior executive or an important position in the company;
We have our in-house intelligence team in HongFangLaw, and they are experienced with onsite information collection technique and high ability on information analysis, and to provide true and objective facts to clients for their internal evaluation and consideration, helping clients to make proper decision.