In-Depth Due Diligence Averts Investment Trap: How We Helped a PE Fund Avoid Significant Losses

In-Depth Due Diligence Averts Investment Trap: How We Helped a PE Fund Avoid Significant Losses

User pain points:An international private equity fund considered investing in a Chinese new energy company but had doubt

Case Introduction

User pain points:
An international private equity fund considered investing in a Chinese new energy company but had doubts about its technical capabilities and market position, needing verification of its actual business status.

Solutions:
We formed a professional due diligence team and conducted a comprehensive assessment of the target company’s actual situation through diverse investigative methods including technical expert interviews, production line inspections, and customer-supplier verification.

Results:
Discovered that the target company had exaggerated core technical data by 40% and misrepresented production capacity, helping the client renegotiate valuation and avoid potential losses exceeding $30 million.