Services Case Studies

Business Relation: Potential Investee

Background

• The Client had selected a potential investee for investment purposes.
• Prior to investment the Client had hired us to take a deep dive into a potential investee (an entity that majorly deals with the textile industry), to identify information for it’s Key Management Personnel (KMP) and it’s shareholders.
• The reputation of the Potential Investee and it’s principals. In addition to the checking of any political relationship

Key Actions Taken

• Detailed internet research for Identification and Verification of the latest corporate information
• Media and internet searches to identify any unfavorable or adverse information.
• Political Exposed Person Check
• Analysis of Financial Statement
• Onsite Assessment at the location(s) of the Potential Investee to identify any related adversarial information

Underlined Results

• The shareholders were found to be in close proximity to influential political leaders
• The potential investee was found to have very large statutory dues.
• Criminal litigation cases were found against the two Directors

IDD Insights

• Influential political relationship indicates the potential loss of investment money in future.
• Large statutory dues indicate future litigation liabilities which may hamper investor’s invested money.
• Litigation specifically criminal litigation charges could create a huge loss to the Company.