Due Diligence Investigation

2 Minutes Read

Case study

A multinational medical supply company recently sought to contract with a potential partner in Egypt. The company conducted due diligence to ensure no regulatory or reputational problems associated with the outside group and sought information regarding their track record, integrity and reputation. While researching the potential partner, investigators found a lack of information among corporate registration authorities, the local chamber of commerce or other resources to confirm that the company was who it claimed to be. Research showed no physical locations the main address claimed by the company was found to be a residential site with no indication of business operations.


More findings

Things weren't adding up in the effort to establish that the potential partner was a legitimate business. Scepticism was confirmed when our agents researched court and police resources, finding that the company's principal was previously charged with a "criminal breach of trust". There was still a trial proceeding with regional trial courts. Three other civil damages claims against the principal were discovered, with USD 1.2 million claimed in liabilities.

By engaging in due diligence at the outset, the client was protected from entering a bad deal that could have resulted in severe economic loss and a potentially damaged reputation. Due diligence on potential business partners is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity due to diligence investigations, DueDiligence360™, provides your business with the critical information it needs to make sound decisions regarding mergers and acquisitions, strategic partnerships and the selection of vendors and suppliers.

Practical and comprehensive third-party risk management can save your organization from risk, liability and other perils associated with outside parties that seek to engage with your business. Uncovering the unknowns and having the proper research and information are keys to ensuring your potential partnerships can be lasting and successful.


What is due diligence?

Due diligence is understood as the reasonable steps taken to satisfy legal requirements in the conduct of business relations. An Integrity Due Diligence allows you to reduce risks – including risks arising from the FCPA (Foreign Corrupt Practices Act) and the UKBA (U.K. Bribery Act), make informed decisions, and pursue takeovers or mergers with more confidence. In the business world, due diligence refers to the organisation's investigation and steps to satisfy all legal requirements before buying or selling products and services or entering a contract or a financial arrangement with another party.

Unlike other kinds of control (audits, market analysis, etc.), it must be independent and rely as little as possible upon information provided by the researched subject. The other significant difference lies in the methodology: commercial or financial due diligence analyses available information. Investigative Due Diligence provides reliable and pertinent but raw information.

When conducting investigative due diligence, you can identify key risks, enhancing your knowledge and understanding of the customer, supplier, employee and third-party risk, helping you avoid compliance issues


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Soraia Antunes

Soraia is a Chief Marketing Officer, leading the advocacy for CRI® Group and ABAC® Center of Excellence on fraud investigations, risk management, compliance and anti-bribery anti-corruption. She is a technically and commercially astute professional with over a decade of B2B and B2C experience across various industries and cultures on a global scale. She loves challenges and believes in enhancing customer loyalty via high-impact marketing and communication strategies combined with engaging visual identities. She is passionate about creative excellence and driving innovation while influencing key stakeholders. Soraia has a record of significantly enhancing a company’s brand market performance, effectiveness and profitability by improving name recognition, building credibility and inspiring employees.