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Due Diligence

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Due Diligence is a method for inspecting companies and businesses. The service can be used if you are planning to buy or invest in a company or start some kind of collaboration. Due Diligence provides a very detailed overview of a company's current situation, but also its history. The method values ​​both the economic and the legal part of the business.

DUE DILIGENCE PROTECTS YOU AND YOUR INVESTMENTS

Due diligence is a method to inspect companies and perhaps the most important tool if you are considering buying or investing in a company, or if you want to understand how a competing business is run and whether there are deficiencies in the business.

Due diligence should always precede the important decision of buying, cooperation or an investment. Due diligence ensures that both parties know what to expect before entering into any kind of agreement, which reduces the risk of unforeseen events and the consequences of dishonest intent.

The service means that we collect information about a company’s background and history. We can, among other things, look at the board and its members – both present and former – and we identify any problems and so-called “red flags” that you should be aware of before an important decision is taken.

We do thorough background checks and take a closer look at the physical persons behind the company, and we look at both company members and the board. We then deliver a thorough report to you about our findings, where we report any risks with the company, for example, that the representatives of the company have been subject to a tax investigation, police investigation or if there may be contacts with criminal persons or organizations that might expose you to unnecessary and unexpected risks from a potential partnership.

Due Diligence also includes a financial audit where we analyze the company’s accounts and verify that everything is in order. When we do a legal inspection, we review any ongoing litigation as well as any important agreements that the company may have entered into. We also check that the company pays tax, how the tax is paid, and that everything works as it should be regarding income tax, VAT and excise taxes. Here we also do a thorough examination of the company’s registered intellectual property rights.

ACCESS TO DIFFICULTY INFORMATION

Due diligence also gives you a deeper understanding of the company, its owners and board members. We provide you with information from among official and unofficial databases and other sources of information. We use this information in our risk analysis which we then present to you in a rapport.

Our professionally designed reports provide a very clear overview of a company’s history and background, which may serve as an important decision basis for future business and partnerships. Our resources are technically advanced and we can easily and quickly conduct an in-depth investigation with Due Diligence.

DUE DILIGENCE IN SWEDEN AND INTERNATIONAL

Due Diligence can be performed in Sweden and abroad through our mother company ISRA Intelligence Services.

You can find more information about ISRA here

KNOW YOUR CLIENT (KYC)

Know your client (KYC) is a way of assessing and monitoring the customer risk. It is a way of establishing the customer’s identity, understanding the customer and assessing potential risks with a business relationship, such as the risk of money laundering. We have the experience and resources to perform a detailed KYC.

WORLD CHECK

Another tool we have available to use is Worldcheck, a service linked to Thomson Reuters, where we quickly determine whether a person, company or organization is flagged for sanctions or appear in money laundering cases.

DO YOU WANT TO KNOW MORE?

Contact us for more information. We offer a free consultation to see what solutions are available for your particular situation.

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Chinese Investors Ordered Due Diligence

A Chinese consortium had shown interest in buying up a Swedish company and the Board wanted to be sure that they had been provided with all relevant information before making the final decision. Our investigation was to check all the details, a new company inspection was done to investigate real assets, in particular, intellectual property rights for new products. The client wanted to be sure that all rights and patents were in order and that there were no legal reasons for not choosing to take over the company.

Our investigators completed the investigation process and were able to answer any remaining questions, after which discussions regarding the takeover could continue

US private investor acquires a new partner in Forex trading

A wealthy private investor sought help to "do a background check," but he was unaware of the difference between a regular background check and due diligence. We explained the difference between the two concepts. We then received more information regarding the Swedish company with which the investor intended to cooperate. Upon closer inspection, we made some disturbing discoveries. It turned out, among other things, that the company had previously been the subject of investigation, then regarding suspicion of advanced fraud with Forex trading, where the platform used was suspected of being manipulated for the purpose of deceiving investors.

The investigation was started by us and all individuals within the company were checked, partly the then board of directors who had taken office 6 months earlier, but also former company members and employees. We worked methodically through the company's contact network, where we could identify the majority of risk factors, and find other clients who had been exposed to various types of fraud. With this in mind, we could not recommend a collaboration with this company and, thanks to our evidence, our client was able to team up with other investors, who then reported the company for fraud and attempted fraud.

The Swedish Crime Agency was grateful that we had done most of the investigation, as this made it easy for them to take legal action and bring charges.

Due Diligence of a Hungarian company

A Swedish company made the decision to relocate its entire technical department to Hungary, where it then hired labor locally. In order to succeed, we arranged background checks on the new managers to be appointed, as well as Due Diligence on partners and others involved. These controls were important factors of the Swedish company's strategy, which in turn resulted in a successful establishment in Hungary.

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