Investigative Due Diligence enables you to thoroughly evaluate your potential business partner or vendor before any major commitment takes place. It helps you identify any business inconsistencies and risks that are not visible from financial or legal reviews. AXIS specialises in information gathering through our skilled team of investigators. Our initial focus begins on the key people and/or entities related in the given transaction or joint venture, followed by the background history, reputation, business ethics, litigation history, business acumen and influences in certain environments that could prove important for the successful outcome of a business deal.

Unfortunately, there are deceptive people who misrepresent themselves and their intentions in any business environment. Exposing potential skeletons in the closet, criminal issues, regulatory or environmental breaches, litigation, bribery and money laundering are among the key factors that we identify during our analysis of the parties related. Investigative Due Diligence is crucial, as it provides our clients with information that will put them at a certain comfort level to enable them to make strategic business decisions. This also helps avoid unnecessary commitment to invest in a project without prior knowledge of the problems that might occur, which could lead to potential losses.

AXIS can assist by providing all the vital information needed to help your organisation make the right decision. We will provide you with a detailed report of our investigations through a legal and ethical manner, utilising knowledgeable industry sources and at the same time conducting site visits and a series of inquiries within the organisation, as well as other parties involved, such as customers, distributors, competitors and government and regulatory bodies, while maintaining discretion. Our report will provide invaluable insight into any potential problems that might arise before you commit your resources.

AXIS maintains a network of worldwide representatives who can perform simultaneous location checks if such a need arises. We make sure the people you deal with are assets, and not liabilities. Due diligence investigations are especially critical under the following circumstances:-

• Accepting a new client        
• Completing a merger or acquisition
• Forming a partnership locally or internationally      
• Hiring new employees
• Finalising a franchise or license agreement
• Establishing overseas relationships
• Handling or investing in an Initial Public Offering

The Incident
A Singaporean-based, financially linked corporation was considering acting as a financial guarantor, in a multi-billion dollar waterfront development project in the south of Malaysia. The idea was revolutionary and return on investment was a guarantee, upon completion within a decade. Parties involved were, a state-owned investment arm, a UK based developer and other foreign equity investors. Uncertainties arose between parties, when the foreign investors revealed their source of capital was from a single source as opposed to multiple sources or institutions of the respective investors. Parties involved were not convinced of the strength of this single financier and wanted solid evidence before committing to a project of such a magnitude.  

Our Professional Solution
AXIS was engaged as independent investigators to tackle the problem faced. We were asked to provide investigative due diligence for the Singaporean-based financial guarantor, to assist them in their due diligence process for the transaction. We initiated the process by conducting searches of public information sources, as well as discreet fact gathering, the procurement of several “off-record” searches, verified intelligence through reliable internal sources of the financier, then, by processing and analysing this information, we were able to provide a comprehensive report to the client. This report detailed:

•  The entire list of companies, businesses, bonds, assets and trusts linked to the financier
•  Credit history of the financier and his businesses
•  The linkage between these foreign investors and the financier
• The property holdings, leases and mortgages (including value) of the individual foreign investors and their entities
• Credit history of the foreign investors and their businesses
• Magistrates’, Supreme, Federal and possible International Court judgements in relation to foreign investors, financiers and their entities of interest
• Other public record information relating to the investors and the financier, including bankruptcy orders
• Media information relating to the investors and financier, and their entities of interest
• Visual analysis charts were also produced to quickly and clearly convey this information to the client

The Final Outcome
We were able uncover sufficient related information, that revealed the financier to be genuine and the link of foreign investors to the financier, were by virtue of business agreements and partnerships. The success of the investigative due diligence ensured our client, despite initial reservations, proceeded with their decision to act as financial guarantor for the entire project.