Contents

Preface

Acknowledgments

Chapter 1: The Business Landscape in China

Macro and Structural Domains

Corruption in China

Conducting Due Diligence in China versus Western Countries

Conclusion

Notes

Chapter 2: Due Diligence in China

Due Diligence for Different Types of Deals

Levels of Due Diligence

Key Considerations

Organization of Due Diligence Process

The Due Diligence Team

Independence of Vendor Due Diligence

Reasons for Poor Due Diligence

Reverse Takeovers

Dispute between SEC and CSRC

Conclusion

Notes

Chapter 3: Financial Due Diligence

Financial Due Diligence Checklist

Conclusion

Notes

Chapter 4: Operational, Commercial, Legal, and Other Due Diligence

Operational Due Diligence

Commercial Due Diligence

Legal Due Diligence

Balanced Scorecard (BSC)

How to Predict Bankruptcy—Altman Z Scores and Gearing

Optional Checklists

Conclusion

Notes

Chapter 5: Beyond the Checklists: Founder and Management

Founder Management Root

The Founder Background Check

Guanxi (Relationship)

Due Diligence on More Than One Founder

Summary of Background Check: SWOPEST and Tri-Background

Conclusion

Notes

Chapter 6: Beyond the Checklists: Hard Facts

Face-to-Face Meetings

Proportion Check

Site Visits

Due Diligence Goes One Step Deeper: The Four Deadly A’s

Conclusion

Notes

Chapter 7: Implementing a Due Diligence Workflow

Getting the Mind-Set Right

Formulating the Due Diligence Strategy

Forming a Team

Starting the Due Diligence Process

Conclusion

Notes

Chapter 8: Post Due Diligence and Case Studies

Preparing ...

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