A leading Hong Kong based global private equity firm was interested in acquiring shares in a privately held top tier hot pot chain in China.
We worked closely with the Mainland China investment team and jointly conducted a due diligence focusing on three key areas.
Potential Investment Risks
Overall Market Attractiveness
Overall Target Company Assessment
We interviewed all key company management over a three day period, and visited branch offices and stores in 6 key cities including Beijing, Tianjin, Shenzhen, Guangzhou, Lanzhou and Wuhan. We also looked at financial performance, operations standards, HR management, real estate selection, the supply chain and franchising systems.
No major red flags were found and the project was approved by the firm’s investment committee.