Due diligence

Our investigative due diligence services help investors operating in our area in making confident decisions and know more about reputation, marketing position, criminal or governmental relations of the company they plan to purchase.

Analysis of financial statements, legal compliance check and assets’ valuation isn’t enough for understanding what makes the business successful and will (or will not) it work effectively under control of a new owner. There’re traditional due diligence – when the letter of intent is already signed and there’s direct access of the team to the site of the company, to the reporting system of the enterprise and to it’s facilities. The same time and it is quite often, especially in big deals and when initial negotiations are in progress, it is easer, cheaper and more effective for the acquire to conduct investigative due diligence research and find skeletons in the closet of the company before signing any official documents.

Why investigative due diligence is a must even if you have hired a team of reputable lawyers and financial advisors?

  • Taking into consideration poor reporting system and gray business practices of several regions of our coverage area, without investigative due diligence research new owner can face old “hidden” debts of the company or obliged to pay kick-backs to local organized crime or governmental authorities.
  • Working solely on the site of the company it is hard to conduct FCPA and UK Bribery Act compliance checks. Accurate and professionally made reports of compliance experts will be solid only if these experts have access to sources and information hardly available for professionals without appropriate background in intelligence and corporate investigations. Terrorism financing is also not a fiction especially in Central Africa and the Middle East. Purchasing of a company that was somehow involved in illegitimate activity and especially in terrorism financing is a serious crime. This can damage your reputation unless you do investigative due diligence research and aware of the situation before making the decision to acquire the company.
  • Interpersonal relations of top-managers with key clients, providers and regulating authorities are often underestimated even at the final stage of the deal. Interviews of HRs can bring no valuable results, because top-managers prefer keeping their secrets to themselves. Investigative human due diligence research will help you in understanding plans, intentions, connections and personality of your top-managers and business partners before you purchase the company. Sooner the better.
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