Due Diligence

There are a number of definitions relating to due diligence, which all basically boil down to, do your homework. Whether it’s in Legalese, making various references to the phrase ‘caveat emptor’ aka let the buyer beware or ‘Accountanese, where evaluating the reasonableness of historical and projected earnings, cash flows, assessing the quality of assets, potential hidden liabilities, commitments and unexpected exposure may come to the fore.

Both are seeking to ensure the client and that all risks have been evaluated, so as to make sure your monies, corporate image or other assets are safe!

Augmented Services

As with other companies, our due diligence services are designed to identify similar issues to which the client may be exposed. Where we possibly differ, is that we are able to augment these services providing additional intelligence and a more comprehensive overview. Particularly in regions where some of the more traditional elements associated with due diligence may not either available or possibly as reliable. Particularly in emerging markets and frontier environments and economies. As well as undertaking opens source intelligence (OSINT) analysis, we are also able to provide access to unparalleled human intelligence (HUMINT).

Typically, the scope of traditional due diligence reviews broadly focus on the following elements:

  • Identifying potential industry or inter-business specific risk.

This service may in occasion also identify opportunity

  • Evaluating the quality of historical data.
  • Evaluating projected earnings and cash flows
  • Evaluating assets.
  • Identifying potential commitments and contingencies.
  • Quantifying undeclared or hidden liabilities
  • Identifying other issues that may affect the overall value of the venture.

As part of the augmented services, we are able to offer an unparalleled insight into markets where information can be scarce, unreliable and as a consequence loaded in favour of those invested in as opposed to investors.
Whilst able to access information in most parts of the world, with regards to frontier and emerging markets, we specialise in areas such as West Africa, Eastern Europe and the Caspian.
These services are aimed at identifying other aspects of a potential investment that may be outside the control or knowledge of potential business partners, such as political, business, and criminal issues that could impact on a client’s approach. Providing a more comprehensive risk analysis. It is known that certain frontier market and economies have practises and associations that may exist between the government, business and organised crime. Our services are also able to focus on these aspects of potential risk.

POLITICAL

Political overview offers insight into a number of areas:

  • Attitude to foreign partners
  • Dynamics among leading and opposition members of a government
  • Environment
  • Individuals or entities, the subject to international restrictions/sanctions
  • Key individuals
  •  Leadership structure
  • Membership or acquiescence to relevant treaties or organisations
  • Powerbrokers
  • Regime stability / Continuity of governance assessment, including longevity of key officials
  • Security, both local and regional.

As part of the political analysis, for certain countries and regions we are able to offer authoritative reports on a range of internal factors, some covering a variety of factors which may have a bearing on strategy, which include but are not limited to:

  • Resource Nationalisation – Potential for the state to take (or seek to take) direct and increasing control of economic activity in natural resource sectors
  • Privatisation trends and drivers for privatisation.
  • Barriers to entry  – such as high start-up costs or other obstacles that may prevent new business/competition within a defined area.
  • Preferred entry –  potentially using foreign direct investment towards a market entry strategy

BUSINESS

An in-depth evaluation of historical and current elements which could impact on entry strategy and operations, some of which includes but is not limited to:

  • Due Diligence of local partners to establish:
    • Host government
    • Identify any corporate misconduct and litigation record
    • Organised crime influences
    • Professional credentials of directors and senior management
    • Executives (Screening Process)
    • Verification of current shareholder structure
    • To identify the ultimate beneficial ownership and control of shares
    • To identify any potential future agreements.
    • Analysis of any oligarchy or similar structure which may have a bearing on corporate operations.
    • Identification of historical issues faced by foreign partners previously within the public domain which may be of interest.
    • Local attitudes and perspectives towards foreign investment.
  • An assessment of local conditions/infrastructure including:
  • Communications
    • Energy Supply
    • Roads
    • Transport
    • Workforce.

CRIMINAL

With access to an extensive network of contacts embedded within host countries and intelligence we are able to offer clients:

  • Due Diligence of local partners allowing for screening of organised crime affiliation and criminal conduct.
  • The identification of and influence of organised crime at national, local and sector levels.
  • Internal corruption issues that may adversely impact upon potential business strategy.
  • Host government’s attitude towards corrupt practices and response to international anti-corruption efforts, such as anti-money laundering initiatives.
“The aggregation of data from a variety of sources invariably increases intelligence…”

Our expertise and experience, uniquely combines electronic forensic skills, with an understanding of corporate finance.

Asset Tracing – Audit – Computer Security – Digital Forensics – Due Diligence – eDiscovery – Fraud Investigation

Intelligence Gathering -Passwords Analysis – Penetration Testing – Wireless Security

Services underpinned with expertise and experience.