The target company mainly conducted R&D. The investor was concerned if the fund to be injected is properly used for R&D purpose, which was one of the important factors affecting investment decisions for the investor.
・The results of Due Diligence confirmed that the funds of target company were properly used for R&D.
・As a result, the main concern of Client was resolved, and subsequent negotiations for investment proceeded smoothly.
・Based on a request from Chinese company who considered for the investment in Japanese company, Mirai Consulting conducted Financial Due of the target company.
・Despite the tight schedule of Due Diligence, the points were well discussed and focused with Client prior to the commencement of Due Diligence. Hence Due Diligence report was promptly issued and reported.
The target company (Japan) was a company whose business purpose was basic research on a certain field. Due to the nature of the business, there was no revenue from external sources while the company continued its basic research. As a result, the company continued to spend funds raised from outside investors as R&D expenditures.
The Chinese investor paid great attentions their business structure especially on the decision-making process for the funds. Therefore, Due Diligence was conducted not only focusing on finance, tax and risk assessment but also on the detailed use of capital.
Under these circumstances, Mirai Consulting conducted Due Diligence of target company (especially the use of funds from the past) at the request of Chinese investor. Although the delivery date from the commencement of Due Diligence to the report was extremely short (about 2 weeks), the points were well discussed and focused with Client prior to the commencement of Due Diligence. Hence Due Diligence report was promptly issued and explained.
The results of Due Diligence confirmed that there was no particular inappropriate use of funds among the target company. As a result, the main concern of Client was resolved, and subsequent negotiations for investment proceeded smoothly.