PRE-TRANSACTION DUE DILIGENCE
PRE-TRANSACTION DUE DILIGENCE
Pre-Transaction Due Diligence
Pursuing a merger, acquisition, or joint venture is a high-stakes endeavor, especially when so many factors need to be assessed. While a typical diligence effort might consider the financial, regulatory, tax, technological, and legal implications of a deal, it’s often the hidden reputational risks that have the largest potential to unexpectedly derail a critical strategic investment.
Our analysts supplement traditional research and analysis with fine-tuned reputational investigations that screen a company’s affiliates, stakeholders, or key executives for unforeseen risks. Using advanced research methodologies inspired by federal intelligence gathering techniques, as well as specialized cyber tools for scraping the dark web, our reports offer the highest degree of accuracy, attention to detail, and insight for your most important business decisions.
- Mergers & Acquisitions
- Joint Ventures
- Pre-Initial Public Offering (IPO)
- Investor Background Checks & Credentials Verification
- Market Entry Support
- BRIC (Brazil, Russia, India, & China) Emerging Markets Expertise
Who We Help
Our team has decades of experience assisting clients in the U.S. and overseas, through tailored research covering countless English and foreign languages sources. We’ve supported a variety of clients ahead of major investments, including those in the following sectors:
- Private Equity and Venture Capital
- Financial Planning
- Investment Banking
- Hedge Fund Management
- Corporate Development
How It Works
As you prepare for a deal, our analysts conduct extensive research on the subjects or business entities in question, uncovering major reputational red flags and, if necessary, assessing the viability of a company’s business model. By focusing on criminal activity, financial irresponsibility, hidden connections, and associations with shell companies, our experts track down any information that could derail your investment.
A multinational automotive manufacturer wanted to conduct M&A due diligence on a company owned by a prominent Chinese automotive firm. The company under investigation was planning to acquire one of the client’s commercial units, and the client wanted to understand any potential risks before the acquisition was reviewed by federal authorities.
Analysts trained in Mandarin-language used Chinese media databases to uncover company ties to a state-owned enterprise. Initial sanctions, PEP, and legal database research discovered executives’ political connections to provincial Chinese government business councils. Link-chain analysis techniques were used to visualize the subject entity’s connections to the state-owned enterprise and any violations of international law.
Prescient contacted the client at every stage of the investigation and kept them up-to-date on the findings. Based on the information uncovered, the client’s counsel chose to alter its legal strategy in preparation for the government’s review, potentially saving the client significant reputational and financial damage.