Corporate Assessment (CA): Stability, Assets & Reputation

Corporate Assessment
Corporate Assessment (CA): Stability, Assets & Reputation Report | Do you need a Corporate Assessment performed on a company you're doing due diligence on? If so, read below to learn about what goes into a corporate assessment and how AsiaBridge Law can help.

Do you need a Corporate Assessment performed on a company you're doing due diligence on? If so, read below to learn about what goes into a corporate assessment and how AsiaBridge Law can help.

When to conduct due diligence on a Chinese company?

The Corporate Assessment (CA) is the idea tool for clients who want viability into the stability, assets & reputation of a target company. This report is particularly of value to clients who are thinking about litigation against a Chinese company. If a company doesn’t have assets, it’s not worth the effort to fight and win only to remain uncompensated! If the subject company has assets and is being sued by others for similar reasons, it could be an opportunity to combine resources. The subject company will not know the assessment is taking place.

What does the Corporate Assessment include?

A typical Corporate Assessment (CA) may offer insight into the following financial and administrative details of the target company:

  • Total Assets
  • Total Liabilities
  • Total Owner’s Interest
  • Income
  • Profit
  • Taxes Paid
  • Registered Capital
  • Corporate Status
  • Number & Type of Employees
  • Management (Names & Positions)
  • Name of Legal Representative
  • Shareholders & Shares
  • Related Companies
  • Sales & Purchasing Data
  • Litigation Records
  • Media Coverage & Reputation
  • Official Name of Company
  • Date of Establishment & Registration Number
  • Registered Address
  • Administrative Address
  • Ownership of Physical Infrastructure
  • Type of Entity
  • Duration of Operations
  • Business Scope
  • History of changes to registration & business scope
  • Registered Trademarks & Patents
  • Key Financial Ratios such as
    • Return on net assets (%)
    • Return on total assets (%)
    • Net profit margin (%)
    • Turnover of total assets Asset liability ratio (%).

How long does it take to complete the due diligence?

The standard delivery time for the Corporate Assessment is 10 business days in China. Expedite service is available for an extra fee. If your potential service provider claims they can get the report to you in a matter of hours or even a few days…that is a red flag the report is not nearly as robust at the AsiaBridge service!

How much does due diligence cost?

Much less than the cost of a trip to China! Visit the rate sheet for latest pricing. Flat fee, all inclusive, payable in any currency at the day’s exchange rate.

Where does the business intelligence in the report come from?

We apply a four stage approach that is highly customized for our clients’ needs and far superior to other due diligence reports that may be available online.

First, we leverage our network of lawyers, certified public accountants and government officers to gather intelligence in a fully legal fashion from various official sources.

Second, our due diligence experts analyze the information and highlight the key findings relevant to our client’s situation.

Third, our lawyers carefully review the report in detail and offer their expert opinion on how the client should proceed.

Fourth, we leverage our bi-cultural and bi-lingual staff to translate the report and present it in an easy-to-understand format in the client’s language of choice (English, Chinese, Spanish, French, Portuguese & Russian are available at the time of writing).

Other due diligence providers may charge less for their reports but AsiaBridge provides the greatest value. The competition doesn’t conduct the same in-depth research, analysis from security exports, legal opinions & language options found in the AsiaBridge reports.

Download a sample Due Diligence report:
Corporate Assessment (CA) SAR Sample (PDF)

How to get started?

Simply contact us to explain your situation and list the target company(s). An initial invoice will be issued and the case file collected. The subject company will not know the assessment is taking place. While every field below is important for the case file, the fields in bold are the most useful to the researchers.

  • English Name of Subject Company
  • Chinese Name (in Chinese) Send scanned image if you don’t have Chinese language software to cut and paste.
  • Phone(s)/Faxes(s)
  • Social Media Profile(s)
  • Email Address(es) of Subject Company
  • Website(s) of Subject Company
  • Address(es) of Subject Company in English
  • Address(es) in Chinese Send scanned image if you don’t have Chinese language software to cut and paste.
  • Skype/QQ/other contact details
  • Bank Account Details of the target company
  • Copy of key contracts/invoices/purchase orders
  • Copy of Business License as provided by the target company
  • Any other information you feel is relevant for our research

DISCLAIMER: Reports are delivered to the subscriber in strict confidence for use by the subscriber as one factor in connection with other business decisions. The report contains information compiled from information and sources which AsiaBridge Law cannot fully control. While the information is believed accurate to our internal standards, AsiaBridge Law does not take responsibility for the accuracy, completeness or timeliness of the contents of the report. AsiaBridge Law, its employees, owners and associated companies, disclaims all liability for any loss or damage arising out of or in any way related to the contents of this report.

FAQ:  How does the Red Flag Assessment differ from the Corporate Assessment?

The  Red Flag Assessment (RFA) for Transaction Risk, Scam & Fraud is useful when:

  • you are doing business with a Chinese supplier of goods or services.

The Corporate Assessment (CA): Stability, Assets & Reputation is useful when:

  • you are doing business with a Chinese supplier of goods or services, 
  • you are doing business with a Chinese customer,
  • you are thinking about forming a partnership with a Chinese entity,
  • you wish to take a Chinese company to court.

 

China Sourcing: Due Diligence

When you are buying from a Chinese entity, either report will help you avoid scams by confirming if the target entity is real or not.  After verifying that the entity is real,

  • The RFA looks at the risk associated with the deal offered by the target entity.
  • The CA focuses on the financial stability of the target entity.

The two reports are designed to complement each other and it is recommended you conduct both forms of due diligence on suppliers. 

Here is detailed look at where the two reports overlap and where they are specialized:

 

Covered in either report:

  • Is it a real company (not a fake scam)?
  • Who are the owners and legal representatives?
  • What is the official address?
  • Are they a manufacturer, distributor, trading company or other type of business?
  • Are they licensed to export products out of China?
  • Are the licensed to sell in the China domestic market?
  • # and type of Employees on Record?
  • When were they incorporated?
  • Has their scope of business changed over time?
  • In what type of building do they work? (office, warehouse, apartment, factory…)

 

The RFA offers the following additional items not found in the CA:

  • How risky is the proposed payment method & terms of trade?
  • Is the official signature being used?
  • Are the documents and certificates provided authentic and valid?
  • Are there red flags found on the company’s website and business listings?
  • Are they well-represented at trade shows?
  • Does their offering appear to be a good fit for your needs?
  • Other red flags

 

The CA offers the following additional items not found in the RFA:

  • Total Assets
  • Total Liabilities
  • Income
  • Profit
  • Taxes Paid
  • Corporate Status
  • Sales & Purchasing Data
  • Litigation Records
  • Media Coverage & Reputation
  • Registered Trademarks & Patents
  • Key Financial Ratios such as
    • Return on net assets (%)
    • Return on total assets (%)
    • Net profit margin (%)
    • Turnover of total assets Asset liability ratio (%).
INSIDERS REPORT & RATE SHEET
China Sourcing: 10 Common Mistakes

 

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