Due diligence at Portsmouth_其他_趣味英语-查字典英语网

Due diligence at Portsmouth

Nobody wants nasty surprises and to protect against them takes a bit of work.

In essence, the buyer of a business is looking for reasons to not invest in the company.

Due diligence involves looking closely at all the company's records: statutory financial statements; internal process controls; management accounts, budgets, analyses and projections/forecasts; contracts with employees, suppliers, customers and others; insurance policies... and assembling the jigsaw.

- It’s what you don't know that can hurt you, Experienced-people.co.uk, undated.

2. Hong Kong’s market regulator is examining whether international investment banks and local sponsors carried out adequate due diligence on the $31.8bn in initial public offerings in the territory last year.

The move reflects the Securities and Futures Commission’s concern that IPO sponsors allowed unsuitable companies to float in Hong Kong as it overtook London and New York to become the biggest IPO market.

“The market is hot and when the market is hot there is a temptation to relax standards,” Martin Wheatley, SFC chief executive, told the Financial Times. “The concern is to keep the quality level high so we don’t have a number of failures in two or three years’ time.”

He said the SFC would launch a formal probe in coming months but an initial examination had raised questions about a handful of the 73 IPOs in Hong Kong last year. Brokers would be asked to provide detailed records of IPOs they have arranged over the past 18 months so they could be audited for compliance with regulations.