Due Diligence, Probity, and Background Checks

In the fast-paced world of corporate acquisitions, making informed decisions is paramount. A recent case involving a private equity (PE) firm’s bid to acquire a health and vitamin company underscores the critical role of thorough due diligence. NSI Global’s expertise in conducting comprehensive investigations not only mitigated potential risks but also empowered the PE firm to secure its investment and protect its interests.

During vital business acquisitions, overlooking critical details can lead to disastrous consequences. This case study sheds light on how NSI Global’s investigations uncovered hidden risks in a seemingly straightforward acquisition, proving the necessity of robust due diligence.

A private equity firm on the brink of acquiring a health and vitamin company was poised to make a significant investment. Sensing the gravity of the decision, they engaged NSI Global to perform a comprehensive due diligence investigation. Our task was to delve deep into the backgrounds of the target company, its directors, shareholders, stakeholders, and affiliated entities.

NSI Global unearthed a startling fact: two directors had secretly established a new company, which raised suspicions about their intentions. Further investigation revealed an intricate web of connections spanning holding companies, offshore entities, and even international trusts. These discoveries posed a grave risk to the potential acquisition, demanding swift action.

Vigilance through Investigation

NSI Global’s due diligence experts meticulously mapped out the intricate connections between individuals and entities. By following the trails of associations, we exposed the true intentions behind the newly established company and its hidden relationships. Our deep dive into the foreign trust company based in the British Virgin Islands unveiled its role in facilitating the transfer of the Subject Company’s base of top-tier VIP customers to the new entity.

Probing further, we conducted discrete investigations into this new entity, revealing a succession of business meetings with the existing top-tier VIP customers spanning two weeks. These VIP customers remained oblivious, attributing it to a mere alteration in business structure, and were poised to continue business-as-usual operations with the new entity.

Preventing Breaches and Ensuring Compliance

With NSI Global’s insights in hand, the PE firm swiftly initiated injunctions, halting questionable activities that could have jeopardized the acquisition’s integrity. Armed with our investigation reports, they were able to assert their contractual rights and ensure compliance with legal requirements.

Empowering Informed Decision-Making

By combining the power of factual evidence with legal documentation, NSI Global enabled the PE firm to regain control over clients entangled in the shadowy web of affiliations. Our investigation led to disqualifications and corporate actions against the dishonest directors, safeguarding the PE firm’s investment and paving the way for a successful acquisition of the health and vitamin company.

Partnering for Success

NSI Global’s case study underscores the indispensable role of thorough due diligence in today’s intricate business environment. When contemplating acquisitions or strategic partnerships, investing in meticulous investigations is not a choice – it’s an imperative.

A Guide to the range of Probity, Due Diligence, and Background Checks available through NSI Global are:

• Politically Exposed Persons Checks
• AML Checks (Anti-Money Laundering)
• Due Diligence
• Probity Checks for Employment
• Bankruptcy Checks (Equivalent International Checks)
• Civil and Criminal History Checks
• National and International Criminal Records Checks (Jurisdiction Dependent)
• Corporate Directorships and Shareholding Checks (Equivalent International Body)
• Corporate Banned and Disqualification Checks (Equivalent International Body)
• Organised Crime Registries
• Enforceable Undertaking Register Checks (Equivalent International Body)
• Prudential Regulatory Authority Checks (Equivalent International Body)
• Public Record Checks (Equivalent International Checks)
• Property Records
• Asset and Liabilities Checks

We stand ready to be your partner in navigating the complex landscape of corporate transactions, ensuring that your investments are shielded from unforeseen risks and potential pitfalls. Your success begins with meticulous investigation. Contact NSI Global today for a confidential consultation.