Pre Transaction

Prior to entering into any major transaction – such as an acquisition, merger or joint venture – it is accepted best practice to conduct due diligence on the party/s to that transaction. Traditionally, this due diligence falls into 3 categories:

• Financial – do the numbers add up, are they true and correct
• Operational – does the machinery work, is the factory fit for purpose
• Legal – are patents registered, is the company subject of litigation

RISQ provides another arm to the due diligence process – reputational or enhanced due diligence. It is important for organisations to understand who they are getting into business with. Our researchers undertake background enquiries into principals and directors to identify any adverse information that can impact a pending transaction. This can include having a history of “phoenix companies”; poor relationships with suppliers/customers; and a bad industry reputation. In these types of instances, forewarned is forearmed.