To the benefit of Private Equity firms, we deliver the following services:
Reputational Due Diligence
Before closing a deal, you wish to inquire about the background, reputation, integrity and track record of the senior management within the target company.
- A Private Equity firm was at the point of purchasing a majority stake into a family-owned pharmaceutical company in Switzerland. However, the due diligence process highlighted a lack of transparency in a number of areas, including financial reporting. As a result, the Private Equity firm initiated an independent Reputational Due Diligence research into the target company’s management. The chief purpose was to determine whether the lack of transparency was due to “old-school” management practices or the willingness of the senior executives not to disclose fully the current financial condition of the company.
Pre-employment background screening
Before deciding on a senior recruitment in a portfolio company, you want to make sure that the applicant’s résumé is accurate and that his professional integrity is beyond reproach.
A Zurich-based Private Equity firm decided to verify in a systematic manner the track record and work history of the senior executives before purchasing a majority stake into a biotech company. It appeared that one of the executives had made inaccurate statements about his past achievements in a US venture.
Assistance to litigation
You need to collect substantiated information or evidence which will help you win court proceedings or gain leverage in negotiations.
- Our client, a mid-market buyout fund, had signed a contract with a placement agent in order to attract investors mostly from Northern American and European investors. Due to a lack of results, relations went sour and the contract was terminated by the fund. The placement agent vehemently opposed this decision and sued our client. Our client asked us to collect information demonstrating the fact that the placement agent had “oversold” the extent of his network amongst investors, in order to leverage its position in the lawsuit.