Commercial Due Diligence:
Overview

Emerging Asia offers its clients unparalleled due diligence services in Asian emerging markets. We enable our clients to take strategic and tactical business decisions based on concrete facts and superb analysis. Clients value our ability to provide high quality, vetted information and analyses that go far beyond simple market research.

Asian emerging markets are complex and require tailored market strategies. Many companies have had to live with mistakes caused by insufficient preparation on the ground. Comprehensive groundwork involves a thorough understanding of the relevant market and sectors in which a company intends to play, or launch new products or services. Furthermore, this is a continuous process and does not end with an initial successful entry into the market. In order to remain competitive and a step ahead of competitors, customers, partners and suppliers, world-class companies realize the critical importance of effective business due diligence.

Our researchers and consultants use a wide range of secondary sources, as well as primary sources (i.e., interviews). Their knowledge of local languages, and access to print media otherwise unavailable on the internet as well as to key business and government sources enables Emerging Asia to deliver high quality results to our clients.

Our corporate clients typically use our due diligence services to assess competition, to analyze customers and how to best serve them, and to identify and screen partners and suppliers. Our due diligence services provide the basis upon which clients can develop a winning market strategy.

Large corporations considering merger and and acquisition deals in the region utilize our services in order to peel below the surface and assess the true market worth of a prospect. Comprehensive due diligence services are also an vital tool for private equity funds, hedge funds and mutual funds considering investments in Asian emerging markets.

Investors find our due diligence services indispensible in identifying and screening M&A prospects, as well as in conducting a throrough market assessment of potential investments ranging in size from privately-owned SMEs to large publicly owned companies and state-owned corporations.

Due Diligence for Understanding the Market

1. Competitor Intelligence

Emerging Asia conducts a thorough assessment of competitors already playing in the market, as well as potential competitors and market entrants. We can assess the strategic, economic and financial strength and viability of competition, their physical infrastructure as well as organizational structure, and their experiences - i.e., whether there any lessons our clients can learn from competitors' experiences and results.

2. Customer Intelligence

Emerging Asia analyzes and identifies consumers and customers for our clients' products and services, whether end-users or B2B customers. We can determine their needs and preferences, purchasing power and price sensitivity, decision-making process, and spending patterns. Emerging Asia can also help determine how competitors view the consumer/customer base, as well as what consumers/customers think about our clients' competitors.

3. Supplier Identification

Businesses around the world are sourcing goods and services from Asia, and particularly from China. However, clients are conscious about quality and reliability issues, as well as timeliness, cost, and the logistics of the entire process. Emerging Asia identifies suppliers that meet the required standards, and can conduct further screening based on client preferences. Emerging Asia delivers bottom line results, and our fee is typically related to the savings our clients realize.

4. Partner Identification

World class companies are seeking true partners in Asia in order to enter into joint ventures, for strategic alliances, or for marketing and business development purposes. Emerging Asia can identify top prospects and screen them for various criteria such as economic viability, management background and controls, and market strength. Through arrangements with top local law and accounting firms, we can also provide screening for litigation risk, financial controls, and other risk factors.

Due Diligence for Investors

1. M&A Due Diligence

Successful merger & acquisition deals require timely but accurate information, sophisticated analysis, and a high degree of discretion and confidentiality. Emerging Asia delivers results in a matter of days and weeks instead of months. Depending on the situation and our client’s needs, we can deliver sound information and analysis regarding the strategic, economic, and financial strength and viability of M&A prospects, as well as conducing a broader industry or market study examining competitors, suppliers, customers, and scenario-planning likely reactions.

2. Investment Due Diligence

Emerging Asia works closely with emerging markets private equity funds, hedge funds, mutual funds as well as endowments, retirement funds, insurance companies and other investors to provide actionable information and analysis for a range for investment targets spanning small privately owned companies to large publicly owned companies and state-owned corporations. We also work closely with small to mid-sized funds that do not have the in-house manpower to conduct extensive due diligence on prospective investments, or to closely monitor current investments and the markets in which they play.