Mergers & Acquisitions Integrity Due Diligence
Opus works in an advisory capacity to prevent or mitigate any financial, or integrity issues in mergers and acquisitions. The implementation of the UK Bribery Act and similar legislation worldwide means the past acts of an acquired company can become the future problems of the acquirer.
Carrying out due diligence to identify and address these risks prior to the completion of a transaction is increasingly important. Risks can be identified and mitigated effectively through both pre-completion negotiation and post-completion remediation. This process helps reduce the risk of last minute deal breakers or future litigation.
Case Study: East African Target Acquisition
On behalf of a UK listed company, looking to acquire an East African company operating in the Fast Moving Consumer Goods (FMCG) sector, we undertook a review of the policies and procedures of the target acquisition, and conducted a financial due diligence alongside a legal due diligence team. Our review involved a forensic review of the books and records, interviews with key management, and background checks on the target acquisition. The review determined that the target had good policies and procedures, which were operating effectively. Our work resulted in the acquisition proceeding and provided comfort under the requirements of the UK Bribery Act.
Case Study: Vietnamese Target Acquisition
On behalf of a US and UK listed company, looking to acquire a Vietnamese company operating in the FMCG sector, we undertook a review of the policies and procedures of the target acquisition. Interviewing key management, and reviewing the books and records for accounting irregularities. We found that the target company had no policies or procedures in place for the prevention or detection of bribes. The acquisition target agreed to the implementation of key controls, which assisted with the acquisition.
Case Study: Third Party Due Diligence
We undertook a detailed financial due diligence and tested the third party’s adherence to ethics and compliance policies. This was on behalf of a US listed company, looking to partner with a South American supplier. The review revealed weaknesses in the accounting practices, and a number of ethical non-compliance issues. We oversaw the implementation of a remediation exercise, bringing the third party up to best practice, and in-line with the expectations of the US listed company.
If you would like to speak to Opus Pear Tree about our services, please contact Nicholas Parton.
Partner, Head of Forensics