Decisions involving the assessment of the suitability of a potential commercial supplier, potential customer, potential joint venture, merger, acquisition partner or potential lender are amongst the most complex decisions that the management of any company may have to face. These decisions are made even more agonizing as a result of the ever-growing complexity in the business environment and relationships in the global economy. It is of great importance therefore for the management of companies to receive timely and accurate corporate due diligence reports before making these crucial business decisions.
Corporate due diligence is carried out with the aim of fully understanding the array of risks and the level of risk that a firm will be exposed to before the onset of a business deal. The risks to look out for when conducting a corporate due diligence include: financial, political, legal and reputational damage.
At Worklab & Co. Advocates, we pride ourselves in delivering high quality corporate due diligence reports for our clients so as to facilitate them to make informed decisions when choosing and vetting their potential suppliers, potential customers, potential lenders as well as potential business entities prior to mergers and acquisitions.
Reasons why Business Entities Should Conduct Corporate Due Diligence
- Corporate due diligence facilitates accurate decision-making.
- Corporate due diligence assists managers to identify the red flags before committing to a business deal.
- Corporate due diligence assists managers to quantify the risk of doing business with potential partners.
What is the Scope of our Corporate Due Diligence Investigations?
- Verifying the corporate registration status and information of the potential business partner. These include the shareholding arrangement and list of directors. This is done in liaison with the relevant state agencies.
- Verification of telephone and postal address of the subject company.
- Verification of telephone, postal address and identities of the principals in the subject company.
- Corporate registry crosscheck to verify the business affiliation in relation to the shareholders and directors.
- Internet, media and social media checks to locate any negative media presence on the company and the principals of the company.
- Liaison with law enforcement agencies to verify whether there is any criminal record on the company or on the principals of the company.
- Checks on any civil litigations, judgments and bankruptcy cases on the company or the principals of the company.
- Liaison with licensing and regulatory bodies, chambers of commerce, business membership organizations and industry association to verify the standing of the company and the principals in respect to these organizations.
- Checking whether there is any political affiliation to the company in question as well as to the principals of the company.