Showing posts with label due diligence. Show all posts
Showing posts with label due diligence. Show all posts
Wednesday, August 8, 2012
Is International Due Diligence Right for Your Business?












The Need for Verification
Times are changing and as the world becomes extremely business savvy, more and more global economies are expanding their market and footprints internationally. With economies becoming interconnected and companies looking out at foreign markets for growth opportunities, businesses need to fully understand the risks they might face in an alien environment and this is where International due diligence for business comes into play. The rewards are quite substantial once the financial risks are properly evaluated.

Birth of Due Diligence
The US securities laws was the first place where the concept of due diligence was found. These laws imposed liabilities upon individuals and organizations that issued securities to the public and were popularly known as due diligence defense. However, these days due diligence is an important requirement when buying a business or undertaking an investment.

How Does It Work Today?
International due diligence for business is a dynamic phenomena and varies accordingly to the professional relationship between the buyer and seller and also the nature and value of the business. For instance, some cases may just work out with a 'light touch' while others might require a full fledged review of the financial documentation, legal information, intellectual property and any key continuing contracts.

The services of a professional due diligence and background check firm includes joint ventures, new vendor or supplier overseas verification, acquisitions and mergers, risk assessment, senior level personnel decisions, customer acquisition, outsourcing to foreign company and conflict of interest investigations. International due diligence for business is a detailed and labor intensive investigation as it is the only way to identify and hedge potential risks. The objective is to uncover evidence, verify information and identify risks.

Starting the Process
A private and professional investigation firm with international offices or field investigators and experience in risk management is most capable of conducting prudent international due diligence for business. The most important think when hiring an investigation firm is to go for someone that has offices or field investigators in the country or countries that you are conducting business with because it is critical to have investigators who understand the culture and speak the language of your business counterparts.

Whether your business is with a gold supplier in West Africa, or you are considering a merger is with a Russia based entity be safe and wise. Minimize your risk and be sure the person or firm you’re dealing with is legit.
Best of luck,

A Hathaway
© 2012 A Hathaway

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Thursday, July 12, 2012
Asset Searches & Bank Records: What You Should Know















What is an Asset Search?

Asset search is a local, national or international search for property, bank accounts, physical assets, or hidden wealth or ownership of assets. Attorneys, investors and private investigators often want to locate personal property or real estate, bank accounts and assets such as company ownership to verify or prove a person’s financial situation. Investors may use an asset search to determine the strength of a company or verify profitable and physical assets. Divorce cases often want to show the other side has the ability or assets to pay when disputing the case in court of law. Lawsuits may need an asset search for uncovering potential liabilities against the assets like state and federal tax liens, judgments or bankruptcy. Searches can be conducted locally, at the national level and even international through a professional private investigation firm.


When to use Asset Searches?

Due Diligence: Companies and individuals often face the need to search for assets on individuals and companies when conducting due diligence. Investors and parties involved want to verify a company representative, potential investor or buyer has the assets and cash flow needed or the profitability he claims. For example, when businesses consider investing or merging with another company whether locally or abroad, an international asset search may include searches for real estate, property or bank accounts to show the company or individual’s financial status.

Assets search can uncover red flags if a company or individual has no assets, or the different assets as he or she claims, or if those assets are found to be under a different name.

In depth background check investigations on individual candidates that are about to engage in a key position in a corporation where managing large amounts of money is often something that is advisable by private investigators and risk management groups. Depending on the how in depth the background check, an asset search or bank records search can also be included.


Divorce and Legal Cases: In the bitter part of an ending relationship where divorce or lawsuit is the only way out, asset searches are used to disclose and reveal hidden assets and should be conducted as the process of divorce begins. It is an excellent tool to assist a spouse, attorneys, and mediators in locating hidden or non disclosed assets, identifying entities, partnerships or trusts. With the information on the assets of the counterparty, investigators and courts can frame discoveries and requests so that the opposing party is more forthcoming and revealing in the case.

An asset search gives clients the tools they need to ensure a subject’s financial statement and situation is accurate. Often real estate, bank accounts, or business ownership can be found.

Once assets or bank records are located, attorneys have more options on the table and can better formulate a strategy on how to go after the defendant’s assets, if the case requires.


How to Get an Asset Search?

Asset search is a useful tool for attorneys, law firms, private investigators, clients in legal processes like inheritance or divorce; business and corporations, investors, human resource departments, government agencies, creditors, risk management, and individuals.

The cost of an asset search varies depending on the location and type of search needed. Bank records are often the most effective as they reveal the exact money trail or source. Costs and turnaround times depend on the country or countries involved. Only a reputable investigation firms such as Wymoo International or similar should be contracted to perform an international asset search, as searches can be complex in nature and almost always require a company with local assets and contact in government and financial agencies in the countries involved. An average turnaround time for most countries can range from 7 to 14 days from time of payment.

Some claim that asset searches and locating bank accounts is illegal. Be advised that laws vary depending on the country, and as a legal loophole, most investigators will provide clients with an unofficial list of assets or accounts, and not the official bank records of the actual bank. The information and evidence of assets is still of great value to the parties involved.

Asset search is a tool that helps thousands of professionals and individuals every day who are focused on due diligence, collecting debt, settling personal injury cases, hiring, buying, selling, merging, investing, etc. Whether for information gathering or litigation purposes, asset searches conducted at the international level are just another way to keep clients informed.

Best of luck,

A Hathaway
© 2012 A Hathaway


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Thursday, April 21, 2011
International Due Diligence Questions Answered


Globalization has benefited many businesses around the world, in most cases, as there are plenty of markets that can be reached by nearly any sized business, or even an individual, from one country to another. With the new global market, how can you tell if the company or person you’re dealing with is trustworthy or the company or business person they claim to be? Is your money and reputation secure in dealing with an known business contact or company in a foreign country? What do you really know about the foreign business environment, the language, the customs, the rules and regulations or the financial practices, and the company and person you’re going to do business with?

That’s what international due diligence investigation is all about. The objective is to minimize the risk in international investment and foreign business transactions, to know your clients well before engaging, to verify potential vendors and business partners. Prudent investigation and diligence is strongly advised when dealing with a new business or business contact in a foreign country. The risk for fraud and scams in international business deals is estimated at 5 to 10 times higher than domestic transactions. Don’t ignore the risk. Private investigators and fraud experts say companies should think of due diligence as a form of insurance policy, and can help you avoid serious financial losses.

An international due diligence investigation is more than just gathering, checking or verifying information; it is an essential process to identify unforeseen risk. International private investigators, local investigation agencies, or professional background check services should have a local team who speaks the local language, knows the local laws, speaks the language, and can verify and uncover the evidence you need to move forward. Identifying red flags early is key to avoiding fraud.

Professional investigators can help you verify contacts, associates, business partners, relationships, source of funds, criminal records, misrepresentation, corruption, criminal activity or fraud. Due diligence can provide you with valuable information to make an informed decision. International private investigators can physically verify the facilities, interview representatives and customers to verify relationships, check the identities of the directors and top executives, and even provide you with references of other companies and contact persons.

Because every company and situation is different, international due diligence should be customized to the needs of every client. And depending on the information to be verified and investigated, a due diligence investigation can include some or all of the following fact checks: Past and current financial performance, ownership and shareholders, board of directors background checks , property and assets verification, legal history including outstanding legal action against the company, tax compliance, major customer contacts, criminal records on executives and contacts, photographs of facilities, business registration documents, identification of associates and other business partners, and more.

If you are considering an international merger or acquisition, international joint venture, a new foreign supplier, or engaging in business with overseas business partners, or if your company is facing a new risk by association with unknown counterparties, be safe and verify. Do your due diligence!

Best of luck,

A.Hathaway.
© 2011 A. Hathaway
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