A Chinese private equity fund was intended to invest in a Chinese private petroleum chemical firm and requested Leapingpoint to perform pre-investment operational due diligence studies and evaluate post-investment integration and performance improvement results in order to ensure the high investment returns and risk avoidance.  

1. The client corporation desired to clearly learn the underlying legal risks associated with certain operations of the targeted private petrochemical firm and conduct auditing for the firm’s business contracts in order to avoid legal risks.

2. The client corporation would like to clearly understand the real financial situation, financial reporting system, internal control system, taxation risks and asset risks of the targeted firm.

3. The client wanted to specifically learn the operations of the target firm including its major facilities, operations process, purchasing system, human resources management and cost control.

4. The client firm would like to understand the post-investment business improvement potential and integration prospects including cost basis optimization, cross sales, business expansion, operational scale enhancement , value chain expansion and technology upgrading.

1. Initial due diligence evaluation：

− Obtained relevant written materials, questionnaires and endorsements;

− In-field examination and physical counting；

− Interviews with middle and senior management staff；

− Communication with financial and legal entities

2. Legal risk and financial risk assessments

3. Cost structure analyses and forecasting

4. Detailed due diligence analyses

− Assumption perfection and alternative plan assessments

− The risk analyses for action plans

− Detailed implementation plans

1. Financial due diligence reports

2. Legal due diligence reports

3. Operations and market potential due diligence reports