Due
Diligence & Commercial
Investigations
Due Diligence forms
the basis of informed decision making in environment
where information is either too scarce or far too much,
depending on what one is looking for. The Sarbanes Oxley,
FCPA, UK Anti-Bribery Act & Patriot Act now make it
incumbent upon all US, UK companies to exercise rigid due
diligence in doing business with entities located both
within & outside of respective countries. The Paris based
Financial Action Task Force (FATF) also enjoins all
its members to do likewise. The fig leaf of "did not
know" is no longer
admissible in situations where companies are found culpable of
transacting with undesirable / criminal elements.
Corporate
governance is increasingly being benchmarked against the quality of due diligence
that an enterprise
undertakes. Due Diligence is therefore no longer a ponderable but almost a statutory
necessity. Vigilant & law
abiding companies necessarily conduct objective third party due diligence prior to formalizing
business partnerships, JVs in
new geographies, vendor selection, M&As, buyouts, divestitures, real estate to name a few. Security of
investments by Private Equity, Venture Funds, Angle Investors
remains another area where Due Diligence has a critical
role to play.
South Asian markets
exciting that they are, tend to be opaque & turn
out to be a virtual minefield for new entrants. The hangover of
cronyism still obfuscates business deals in India.
TACT specialises in accessing primary source data through its painstaking
research abilities rather than limiting itself to on-line searches.
India is yet to evolve robust electronic databases covering
economic crime. Even bank details of Indian citizens
are not in public even if some service providers may
claim the opposite.
TACT India has
successfully completed numerous complex due diligence
assignments for Fortune 100 clients in India & South Asia, that
surfaces irregularities in the claims of prospective
business partners, vendors & consultants.
Transactions
meriting Due Diligence
- Mergers &
Acquisitions.
- Buyouts
- PE,
Venture & Angel Fund Investment
- Contract
Manufacturers
- Vendors &
Distributors
- Local
Business Partner
- Real Estate
- Plant &
Projects
- Business
Information Report
Scope
of TACT India's Due Diligence
- Financial
- Legal and
Compliance
- Real Estate
- FCPA/ UK
Anti-Bribery /
- AML / KYC
Compliances
- Enhanced Due
Diligence (EDD)
- Corporate
History
- Primary
source verification of registration and licences
- Integrity and
Reputation tracking
- Primary
source verification of stock ownership & shareholding.
- Litigation
searches i.e. civil, criminal and bankruptcy
- Movable and
immovable asset searches
- Media
Research and Analysis
- Government
record retrieval
- Public record
searches
- Creditworthiness
report
- Profiling of
principals and key managers
- Research on
affiliated and group companies
.
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