Armed with details about an opportunity, you can make well-informed go/no-go decisions or set reasonable investment limits.
Due diligence in support of a proposed business venture or commercial loan typically covers the personal histories of the target organization's key officers and the legal standing and known performance of the company. But this alone is probably insufficient for making investment decisions in some opaque business sectors or in emerging or frontier markets where reliable information may be scarce.
Unlike most companies providing due diligence investigations, Inquesta can more fully assess the risk to a contemplated project by adding political and reputational risk dimensions to your commercial projects when the circumstances warrant and at a client's request. This approach can reveal:
- Undisclosed history of corruption and bribery
- Reputations of the company and its principals
- Political relationships and influence
Case Study: Factoring Company Avoided a Potential Scam
A financing client sought due diligence on a company requesting factoring services for its $40,000 monthly accounts receivables, valued at $60,000. Inquesta's investigation revealed that all three principals had criminal histories, including financial fraud, across multiple states. Based on these findings, the financier denied the account and avoided a potential loss exceeding $100,000.
Case Study: From Upstart to $50 Million Funding and Success
Inquesta conducted due diligence on a Florida-based technology company planning to expand globally and sought a $5 million business loan. The client, a financing bank, raised concerns about the principals’ potential links to Patriot Act high-risk activities due to principals' origin in a Latin American country, and sought clarity on the company's principals, financial history and reputation. Comprehensive research dispelled these concerns, enabling the bank to approve funding. Within six years, the company exceeded expectations, evolving into a highly profitable, multi-billion-dollar enterprise.
