Commercial Due Diligence (CDD) and Chart Interpretations

Chart Interpretation and Case Study
First Name Last Name
Department: College
Course Code: Course Name
Instructor’s Name
Due Date
Chart Interpretation and Case Study
Commercial Due Diligence (CDD) is an in-depth and comprehensive investigation of a target company’s operations to determine its commercial attractiveness and competitiveness. Additionally, it is necessary to evaluate the business plan, margin sustainability, industry, market demand, revenue, competitors” products, and services to determine whether it is worthwhile to invest in a company. CDD is also helpful to make informed decisions where there is an analysis of potential risks and how the risks affect financials. Additionally, in CDD, there is also an analysis of risk profiles, which helps mitigate against the risk of losses.
CDD is required when:
* Before establishing a business relationship such as mergers and acquisition (M & A);
* In the valuation of target companies;
* When evaluating a market entry strategy;
* When carrying out occasional transactions;
* When money-laundering regulations cover businesses.
Section 2: Chart interpretation (1/5)
* The primary source of web-based advertising in China revenue from 2001 to 2004 was online ads.
* There was a substantial rise in search-engine ads from 2005 to 2010.
* There was growth in web-based advertising from 2001 to 2002, but growth fell in 2003 and did not change in 2004.
* There has been a decline in the growth rate of web-based advertising from 2004 to 2010.
Section 2: Chart interpretation (2/5)
* The Gunner, Raid, Aestari, Mortain, and Pest Hest brands are available in the Lotus Center and Century Lianhua supermarkets.
* The Raid brand is convenient in Kedi, Alidays, and Lawson and was the only convenient brand in Kedi.
* The Raid brand has the biggest range of prices among the five brands.
* The Aestari and Mortain brands are not convenient in Kedi, Alidays, and Lawson.
* Three brands were considered convenient in Lawson, the Gunner, Raid, and Pest Hest brands.
Section 2: Chart interpretation (3/5)
* The monthly media spending in Florida has been on an upward trend in the years 2003-2005.
* The monthly media spending in New York was in a downward trend in the years 2003-2005.
* The monthly media spending has a positive relationship with the gross sales in the West Coast in the periods 2003-2005.
Section 2: Chart interpretation (4/5)
* The sales revenue and net profit were highest in the 2009 financial year compared to 2007 and 2008.
* The profit after tax decreased from 2007 to 2009 from RMB 42 million to RMB 33 million.
* The assets, equity, and liabilities decreased in the year ended 31st December 2008 from the previous year but then increased in the financial year 31st December 2009.
* The total fixed assets increased from RMB 82 million in 2007 to RMB 119 million in 2009.
Section 2: Chart interpretation (5/5)
* The relative market share (RMS) of major website players in China shows Google, Baidu, and Yahoo China has the lowest RMS.
* Based on the compound annual growth rate (CAGR), Google and Baidu have the highest rates of return on investment in China.
* ...