HOW WELL DO YOU KNOW YOUR BUSINESS PARTNERS?
CD: In your experience, how well do companies know their business partners?
Anjum: In most circumstances, companies live under a false illusion that they know their business partners well; however, due to the confidential and proprietary nature of most businesses that would be positioned to engage with business partners, most companies do not know their business partners as well as they should. In most scenarios, the only time a company truly engages in the full-out due diligence of a prospective company is in a pre-IPO or pre-merger situation. Absent that, for routine business alliances, most companies do not realise the importance of a thorough vetting process until problems arise further down the line. Companies considering a strategic business alliance, whether a formal merger or a new joint venture, would be wise to retain the services of a company that can vet prospective business alliances in a grassroots manner. Compliance best practices make no secret of the fact that emerging markets have a dearth of online and public data. It is imperative to vet a company by interviewing not only employees, but also other businesses in the local markets. The best way in which to vet a company is to engage with a company that has local connections and resources. Such hands-on vetting puts any company looking to align with a foreign business in an advantageous position. The overall boon becomes a sense of security that one’s international reputation remains pristine.
Oct-Dec 2013 issue
Corporate Research and Investigations LLC