如何撰写尽职调查报告.doc

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. Iissue Rrules and cases, background Aanalysis Cconclusion We can compare 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 domestic company, we call it a target company, and after the target company earns enough profits, for instance, the company can make an IPO in China securities market, then the investor may withdraw it investment, plus the premium interests or profits from the company, by transferring the shares it has in the target company. It should be noted that in this process, the investor shall deal with the shareholders of the target company. 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 target company’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 retai