In connection with every transaction or any continuous business relationship there is a risk, that one or more of the involved parties do not get what they expected.
Obviously, there can be quite legitimate reasons for that, but in an increasing number of cases internationally there is some kind of illicit actions involved, that constitute a breach of criminal law.
In other words: A word is not always a word anymore, even when it is written on a piece of paper.
Particularly in connection with bankruptcies, acquisitions and mergers one has to be particularly watchful and observant. Based on our experience, we estimate that in 25% of all acquisitions and mergers and in up to 80% of all bankruptcies there is some kind of misrepresentation of assets, potentials and operational issues.
Prevention is the best cure. A thorough due-diligence scrutiny of the completion accounts and the balance sheets BEFORE the hand-over is the only sensible precaution, BUT -
When the damage is done there is still a chance to get your money – or some of it – back through a thorough fraud investigation or examination, which establishes a chain of events and transactions, that constitutes fraud in the sense of the law.
The success of our business rests on satisfied customers. We never venture into an investigation unless the following criteria are met:
Don't gamble with your employments
- 1. Screening for honesty, typically in connection with employments (criminal records have very limited value since only a fraction – less than 1% - of all financial crime is detected and prosecuted
- 2. Analyses and evaluation of shrinkage and counsel or the retail industry
- 3. Evaluation of statements with the purpose of detecting deception and establishing reliability