Applied Research On Financial Due Diligence

In recent years,many companies have begun to invest in mergers and acquisitions for their own development,but the situation of failure has gradually increased.Therefore,in the context of increased M&A activity,the demand for financial due diligence has also increased year by year.The efficient and accurate financial due diligence provided by the accounting firm can break the deadlock of information asymmetry as a third party and provide an intuitive risk identification point for the acquirer.Since financial due diligence is a very practical activity,this paper selects the author's actual experience and takes H-accounting firm's implementation of CMO's acquisition of a photovoltaic power generation enterprise as an example.It is a complete,detailed and practical explanation about how to conduct financial due diligence efficiently when acquiring such companies.To study how to check key projects,analyze key financial data,and identify specific risks in the specific accounting background and business model of a specific industry,and explore how to implement financial due diligence more effectively and draw inspiration.The article divides the application process into three phases,namely the survey preparation phase,the implementation phase and the reporting phase.The implementation phase is divided into six procedures,which are combined with actual cases to clarify how to apply and clarify at the reporting stage and the risks that may exist in the target company.Finally,for practical application research,three suggestions on how to implement financial due diligence policies are proposed.The following are: the investigation preparation stage should determine the focus of attention,ensure sufficient communication and communication during the investigation process,and pay attention to the mutual reflection about financial information and non-financial information.It is expected to help guide the application of the process of financial due diligence and provide guidance for the implementation of related types of financial due diligence projects.