Due Intelligence Case

Case: A large Private Equity firm was investing in a real estate company in India.

Methodology: Our due diligence team carried out intensive search including registration checks, database checks, litigation history and reputational intelligence. Primary source enquiries were made to ascertain the reputation of the subject entity and its key principals. Another key aspect of the due diligence exercise was to divulge the current hidden sources of investment into the subject entity. Researchers got in touch with industry KOLs, brokers, former employees and close associates of the subject entity.

Risks Identification: Comprehensive due diligence efforts revealed that the subject entity was getting a major chunk of its investment from a group of people highly connected with the political parties in India. It further unveiled close affiliations of the key principals with the local state government leaders. Thus there was a potential risk of not getting new land acquisition approvals, projects getting stalled, in case of a changed political scenario.

Oil & Gas Sector

Case: A major oil field equipment manufacturer was selecting their Indian representative partner to represent them in India.

Methodology:  IICPL’s team of researchers conducted due diligence and exhaustive reputational intelligence exercise to track down the subject entity’s and its key principal’s market standing and major operations. India’s oil and gas PSUs and private oil players were contacted. Former employees of the subject company were contacted to understand the work practices and the level of compliance to international business ethics.

Risk Identification:  Discreet market intelligence enquiries revealed that the subject entity has been representing a leading drilling oilfield components manufacturer in India, since last many years. During the course of time, the subject entity’s key principal has developed close relations with key decision makers of India’s leading oil and gas public sector companies. The due diligence investigation further revealed that monetary benefits were being provided by the key principal, to key people senior level positions, in order to secure big tenders. This accounted to FCPA violations and thus a potential business risk.