文档介绍：How to Write a Due Diligence Report for Investment Purposes
The Most Popular Drafting Model for Memos and DD Report
In the United States’ legal education or practices, IRAC structure is the most used writing process for each and every legal document. It is efficient, and very easily to be grasped.
I------issue
R-----rules and cases, background
A-----analysis
C----conclusion
We pare this structure with our Chinese’s classical writing methods: qi(起), cheng(承), zhuan(转), and he(合).
The Investment Model
An international investor wishes to put some capital money into a pany, we call it a pany, and after the pany earns enough profits, for instance, pany can make an IPO in China securities market, then the investor may withdraw it investment, plus the premium interests or profits from pany, by transferring the shares it has in the pany. It should be noted that in this process, the investor shall deal with the shareholders of the pany. At current China financial market, probably all the shareholders wish to go to the public market to attract more investment, so dealing with these shareholders is not a major problem. The major problem is how to avoid the legal and the financial risks in the investment. What if the investment has some legal obstacles that prohibit it from withdrawal? This is the key issue and the most important concern in the DD Report.
Definition
A due diligence report, also called DD Report, is a widely used legal document in today’s legal practice. Especially in international investment activities, DD Report can help the investor to make the right decision for its investment strategies.
What is a DD Report? We can define the legal document as the key and basic information about a pany’s finance and management. The information can show the risks or the benefits for the investments. Before taking any actions, a rational investor, of course including all the experienced ones, generally will retain a law firm or an accounting firm to do the report