Importance of Due Diligence

Who We Are? Hong Kong corporate investigation consultancy,

delivers intelligence and investigation services Expertise and a wide network in Hong Kong,

China and Asia Pacific Diverse and experienced team of consultants,

and in-house professional investigators Accurate and cost effective solutions Winner of Outstanding Corporate Investigation

Consultant Award in 2013

A True StatementCommitted to provide comprehensive and reliable investigation services for clients in a timely manner Integrity and fairness Professionalism and dedication Ethical conduct and confidentiality Objectivity, neutrality, and impartiality Commitment to excellence

Field experience Manpower efficiency & all full-time

investigators, never subcontract to ensure reliability of evidence

Ensure confidentiality and trustworthiness Advanced technology Cross-border support Hong Kong, China and Asia Pacific network Local knowledge & expertise

Our Competitive Edge

Purpose of Due Diligence Safeguard an organization before entering into

an agreement with another party Investigate and evaluate

a business opportunity Confirm all given data and

information Identify potential risks Verify a transaction complies with all terms

and conditions

Who Needs Due Diligence?Establish or prepare for business transactions with: Prospective clients and vendors Merger and acquisitions New business relationships and partnerships Suppliers and supply chains Investors Franchises Distribution networks

Key Searches and Investigation Comprehensive research

• Verification of business, status of company, performance, future projections, undisclosed liabilities, doubtful dealings, ensure ethical practices

Business integrity• Management style, reputation, past partnerships,

credibility

Legal and related matters• Legal cases, compliance with the law

Information and IntelligenceIntelligence on top of data to complete the picture Business approach

• Enquire company information, business operation, reputation from the inside

Previous collaborations• Study the company’s reputation and credibility from

previous partnerships and within the industry

Management information• Top management team information, records, any

adverse effects of their business operations

Information and Intelligence Continue… Physical visits

• Verify registered address, examine its condition

Surveillance• Gather individual’s facts and lifestyle to ensure

trustworthiness

Local and regional knowledge• Knowledge on languages and cultures, and most

importantly regulations to ensure all actions abide by the law

Advantages of Due Diligence Minimize potential risks Make better informed decisions Incorporate proper compliance program Avoid costly mistakes Negotiate for better terms

Overview

Case Study – M&A Project

Private equity client prepare for M&A project in China

Employees not paid properly Managers stole and sold products

Confirmed company internal issues Mitigate risks at an early stage

Findings

Result

Overview

Case Study – Potential Supplier

European company conduct due diligence on a potential supplier in China

17 lawsuits were filed against supplier Worker wage problems & refused to work

Slow production, may not meet expectation Financially unstable, risky partnership

Findings

Result

Conclusion Precaution is key Examine carefully all information given Prevent risks and losses at an early stage to

avoid all kinds of damages to an organization Avoid being fully dependent on the information

given by potential partner without evaluation and verification

Want to learn more about Verity’s Due Diligence Services? Click here for more information

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(852) 2581 9696

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