In a global business environment, the need to know your partner is more vital than ever. Investigative Due Diligence (IVDD) is a critical part of the evaluation process before any major transaction. Essentially it identifies "off-balance sheet risk" or other business risks that are not visible or obvious from financial or legal reviews. IVDD focuses on key people and the entities involved in a given transaction or joint venture, their background, reputation, track record and litigation history.

How Investigative Due Diligence leads to better deals

Whether your potential business partner is a listed company, private firm, government entity or entrepreneur, inquiries need to be conducted to gain a deeper insight into possible risks. Our clients require a level of comfort to support strategic decisions. Issues such as the target's reputation, history, business ethics, and individual officers' integrity, business acumen and their real influence in their local environments can be a key to a successful deal. Identifying potential skeletons in the cupboard, criminal issues, indebtedness, and regulatory or environmental breaches is crucial. Equally important are any bribery-related considerations or potential money laundering exposure.

Negative information acquired through the IVDD process need not be a deal killer. Such information often offers opportunities for deals to be negotiated on better terms and structured to mitigate the risks identified.

Investigative Due Diligence is particularly cost-effective when undertaken in the early stages of a project, as it will identify issues to be addressed before a commitment to invest considerable financial expenditure and management resources is made.

Our Approach

International Risk's IVDD services involve the collection, collation and analysis of information from a wide variety of sources. It starts with extensive data mining of publicly available material, online resources, media, public records, and corporate filings, by in-house research analysts.

Experienced project managers will then oversee in-depth and discreet field inquiries. In a legal and ethical manner, we utilise knowledgeable industry sources and conduct site visits, business approaches, inquiries with government and regulatory bodies, and with other parties or individuals such as suppliers, customers, distributors, and competitors. At the conclusion of these enquiries, we provide a detailed report.

Key Points of Inquiry

• The actual corporate structure
• Physical presence
• Relevant history and background of the company
• Reputation with associated entities (e.g. vendors, suppliers, employees)
• Reputation in its own industry (e.g. competitors, trade bodies, etc)
• Status of any previous international deals
• Background of professional managers and advisors
• Character, integrity and reputation of the principals involved
• Any litigation history of the company and of associated individuals
• Any pertinent labour issues, (e.g. history of strikes, disputes, etc)
• Level of political connections and influence
• Any special relationships that may impact the deal positively or negatively
• Any bribery or corruption-related concerns
• Any regulatory issues that could impact upon the transaction
• Any environmental or social compliance issues