Chemical firm vets candidates, filters out the risks
A multinational chemical firm establishing a new plant in China was considering candidates for senior positions in the operation. Through detailed discreet inquiries into short-listed candidates we discovered that some had falsified career and educational records and some had kinship ties to the JV partner and associated entities that would have posed conflicts of interest and risks to the multinational if they had been hired. The multinational was able to avoid potential traps and proceeded to focus on the most outstanding persons on the candidate list for its recruitment.

International bank evaluates non-performing loan assets
An international investment bank preparing to bid in a Chinese bank’s auction of non-performing loans against state owned enterprises engaged us to conduct due diligence field inquiries into the operational and financial status of key debtors in the portfolio. Under a tight timeline and across diverse locations, we were able to gather concrete intelligence about a large number of companies that enabled the bidder to price the bid effectively before the auction.

Consumer products manufacturer screens suppliers
A leading consumer products manufacturer commissioned an inquiry into the status, practices and reputation of its suppliers. Through discreet inquiries it was established that a number of suppliers engaged in unethical and corrupt practices in conflict with the company code of conduct and that one was tied to the arms industry. As a consequence the company weeded out shady suppliers, consolidated its supply chain and found alternative sources of materials and products.

Retailer scans prospective China partner
A multinational retailer considering a major deal in China initiated a due diligence investigation into the prospective partner. Comprehensive discreet inquiries uncovered significant gaps in experience in the relevant sector but found the firm to have solid underpinnings in other aspects such as financial stability and corporate governance, and to be well connected to influential business leaders and officials. The deal proceeded but the retailer was able to offset the partner’s experience deficit in the sector by introducing a minority third party into the initial arrangement.

Engineering firm dumps partner involved in bankruptcy scams
An engineering firm initiated due diligence inquiries into a prospective partner for a components factory in central China. It was discovered the partner had orchestrated a string of bankruptcies at previous firms and was under investigation facing potential arrest for fraud. The company exited the negotiation with this partner and was able to avoid an embarrassing entanglement.

Bioengineering firm had debt and integrity risks
We performed due diligence for a multinational pharmaceutical company aiming to acquire a Chinese bioengineering firm. We conducted an assessment of the target's market position, reputation of its products, key staff's integrity and distribution network and we confirmed the client's concern about the target's receivables and debt problems and other integrity risks.
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