An international oil company was considering entering into a business relationship with an oil and gas producer in the Philippines but suspected that the target company was associated with local politically exposed persons and that this association might have favoured the company in obtaining a concession for oil extraction. To comply with the Foreign Corruption Practices Act regulations it was necessary to conduct an extensive due diligence to assess the potential risks attached to the deal.
A systematic analysis of publicly available documentation in the Philippines and discreet source enquiries into the target company and its principals were conducted.
It emerged that the management of the oil producer in the Philippines was composed of highly experienced and prominent figures from the public energy sector who continued to retain significant political influence. The beneficial owner of the company in the Philippines was hiding behind nominees and offshore structures but his identity was revealed through discreet enquiries with sources in the local energy sector. It emerged that the ultimate beneficial owner was a former representative of the local government and that his political influence enabled the company to obtain the said concession. The risks attached to the target company were assessed.
A British company operating in the IT sector was interested in the purchase of one of its three Italian competitors but was unable to put in place the right strategy without having an in-depth knowledge of the Italian IT sector and specifically, the three target companies. In addition the client suspected that one of the players had links to the Organised Crime but was unable to assess the veracity of this rumour.
The work conducted included analysis of the financial situation, business models, investments, marketing and product strategies with respect to each of the three companies through a systematic retrieval, analysis and cross examination of publicly available information, combined with discreet source enquiries with local industry experts.
The work resulted in the identification of one of the tree competitors as the potential acquisition target. Evidence was obtained confirming the allegation of association with organised crime by one of the target companies.
A Dutch operator in the printing sector suspected that a former employer, an engineer who had worked for the company for over twenty years and who had recently retired, was providing a competitor with the company’s know how and other confidential data such as supplier and client contacts. To get these activities to stop, the Dutch operator initiated a legal proceedings against the competitor and its former employees but did not have sufficient evidence to prove the case.
The work conducted consisted in collecting evidence, both factual and testimonial in support to the client’s claim, including surveillance and witness identification.
The client was able prove with factual evidence the case of unfair competition. The competitor stopped to act unfairly and the client received compensation for the damages suffered.