Financial Due Diligence (FDD)

1. + Review audited and management financial statements for the past 3–5 years.
2. + Conduct Quality of Earnings (QoE) analysis to assess recurring profits, one-off adjustments, and normalization.
3. + Examine working capital, cash flow patterns, debt and interest obligations, and off-balance sheet items.
4. + Review related-party transactions and confirm arm’s length nature.
5. + Identify potential deal adjustments (purchase price adjustments, debt-like items, etc.).
6. + Provide a comprehensive FDD report summarizing findings, risks, and implications on valuation.

Legal Due Diligence (LDD)

1. + Review incorporation documents, licenses, and shareholding structure including business lines for proper licensing, FDI restrictions, and sub-license requirements.
2. + Verify ownership of assets, including land use rights, machinery, intellectual property, and software.
3. + Examine all major contracts (customer, supplier, employment, lease, distribution, franchise, loan agreements, etc.).
4. + Assess labor law compliance, internal regulations, and any ongoing or past disputes.
5. + Check compliance with investment, enterprise, and foreign ownership laws.
6. + Prepare a Legal Due Diligence Report with a clear summary of high/medium/low-risk areas and recommendations.

Tax Due Diligence (TDD)

1. + Review CIT, VAT, PIT, FCT, customs, and other indirect taxes over the last 5 years.
2. + Examine transfer pricing documentation and intercompany arrangements.
3. + Verify tax compliance status, outstanding tax liabilities, or potential audits.
4. + Assess eligibility and documentation for tax incentives or refunds.
5. + Deliver a Tax Due Diligence Report detailing exposures, financial impact estimates, and corrective actions.