Pre-emptive Due Diligence

A savvy investor once told us that before he invests, he asks two questions: “What am I investing?” and “Am I the right person for this investment?”

Both questions are vital because all investments are inherently risky. While every investor expects their investments to generate earnings in future periods, in reality the returns are not guaranteed. This is why investors turn to our due diligence team to reduce their risk.

What is pre-emptive due diligence?

Due diligence is the investigative process that identifies, verifies and confirms the disclosure provided by the target company. Pre-emptive due diligence refers to the practice of conducting this investigation prior to undertaking any business transaction.

Pre-emptive due diligence is about helping investors to reduce their risks, thereby saving them time, money and problems later on. Our qualified due diligence specialists work to quantify the possible risks versus rewards of any pending business transaction. As a result, company directors can make an informed investment decision.

Types of pre-emptive due diligence

Financial due diligence

Financial due diligence checks a target company’s health by reviewing its financial statements and data. The information should reveal compliance, financial conditions, market trends, historical working capital, among other key indicators.

Legal due diligence

Legal due diligence analyses a target company’s contractual relations, pending litigations, intellectual property, among others. Intelligence gathered from legal due diligence helps investors to understand any legal claims before concluding a deal, as well as for price negotiations.

Human resource due diligence

Employment cost is often substantial, more so if your target company relies heavily on manpower. Before investing, you need to understand if the costs will continue to rise and if its employment structure will put your investment at risk.

International due diligence

In today’s connected world, it is entirely possible that your target company is incorporated elsewhere, selling goods or providing services in a territory where you aren’t familiar with. This is where our global network of international due diligence specialists will come in handy. We are here to help you verify a foreign company’s legitimacy and undisclosed facts, along with the business environment in that particular country.

Why is pre-emptive due diligence important?

History is littered with failed investments because investors rush to seal a deal without conducting adequate due diligence beforehand. As a result, they may find themselves losing money to fraudsters, becoming victims of another country’s unique political systems, or suffering reputational damage. Pre-emptive due diligence aims to minimise or even prevent such risks.

What’s involved in a pre-emptive due diligence process?

Detailed research

Using state-of-the-art technologies, we can comb through an extensive amount of data to find essential and relevant information in a timely fashion, thereby saving you time and money.

Personal investigations

Companies don’t make decisions; their management does. Consequently, you may need to check up the credentials of these individuals. While public material helps to an extent, we can achieve better insights with discreet inquiries from sources who possess a good knowledge of these individuals. Our investigation also looks at possible politically exposed persons who, and whose family, may be vulnerable to corruption.

Compliance checks

Compliance investigations ensure that the target company or individual falls clearly within all statutory or regulatory guidelines and constraints such as the Foreign Corrupt Practices Act (FCPA) in the USA and the UK anti-bribery laws.

Fraud investigations

Investigation of possible improprieties may indicate cases of fraud by company directors or other senior executives which would be detrimental to you the investor.

Detailed reports

Once we have the information, we process and present the data clearly and concisely. We will also state all the information sources, along with evidence when applicable.

Contact Blackhawk Intelligence for pre-emptive due diligence support

We help companies and individuals to avoid fraud and cut risks by evaluating the claims and data of a target company, and its management team when applicable, before going ahead with a financial transaction.

Backed by an extensive network of due diligence specialists around the globe, we can investigate companies in the UK, Europe, the Middle East, the Far East, and the Americas.

For more information, talk to our team by calling +44 (0)20 8108 9317 today. Alternatively, you can contact us via the Contact Form.