Failure to conduct due diligence prior to taking on new clients, entering a business deal, or ahead of an investment can cause companies to suffer great losses. In 2012, one corporation’s financial loss amounted to $11.1 billion after missing red flags and not performing adequate due diligence related to an acquisition. Another corporation’s hurried due diligence process ahead of a merger, cost the company $99 billion; it was the largest annual loss ever reported by a company.
Companies need to examine key areas of a business or an individual to determine whether to go through with an investment, a partnership, or an M&A, and uncover any red flags that perhaps may endanger the company’s reputation, business process, or harm its profitability in any manner.
Conducting due diligence in the Middle East isn’t without its challenges; aside from the unavailability of basic public records and difficulty of conducting licensed due diligence services, there are also political developments that make it more challenging. Crownox operates in the region through local teams whose individuals bring extensive networks of human relations, employed to fill the gap between what is available and what is publicly inaccessible. Our team of field researchers, analysts, lawyers, legal accountants, and former employees of governmental entities identify challenges on behalf of our clients, and will spare no effort to verify facts, and gather information. Our teams are well-versed in different cultures and languages, and have a deep understanding of international companies’ needs as well.
Due Diligence Checklist
National ID number
Personal Information Check
Personal reputation & affiliations
Local Media & Internet Multilingual Sources
Mass media mentions
Public Image Assessment
Social Media Assessment
The Office of Foreign Assets Control (OFAC)
The System for Award Management (SAM)
United Nations Security Council sanctions list
Bankruptcy, liens & tax standing
Business affiliations & associations
Civil litigation history
Legal filings check
Our due diligence research methodology is legal and confidential; it utilizes public records and includes an in-depth open source analysis that is conducted in different languages. In addition, we perform a number of internationally-recognized checks including OFAC and United Nations Security Council Sanctions List among others. We ensure the utmost compliance and confidentiality to best mitigate risks and safeguard against ill-advised decision-making.
Through working with local experts who collectively have a vast network in both public and private sectors all over the region, which they utilize to authenticate documents, validate facts and collect information, Crownox can reach where others can’t.
Crownox provides the investigative due diligence in three layers:Layer 1:
Layer 1 comprises a standard due diligence report, which includes: background verification, identity check, verification of corporate entity and criminal record checks.Layer 2:
Layer 2 provides a more thorough and closer look into the subject by interviewing local connections and inner circles.
In addition, we analyze information derived from the open source, given that computer-based sources and databases are only periodically updated. Open source research includes international and local media analysis and adverse media research, in English and local languages.
For a well-rounded investigation and a deeper look into the wider circle of the subject, a third layer can be added, which includes investigations of the subject’s next of kin, companies the subject conducts business with, or is funded by, in addition to multi-jurisdictional investigations.