Investing overseas and finding international business partners have always been tricky. It takes deep thought and a lot of evidence and math to decide whether a business will do better by partnering up or expanding overseas.  Every single detail must be considered in order to avoid business fraud, especially when the deal involves companies and individuals from high-risk countries for fraud like the UAE, Russia, Ukraine, Romania, China, Malaysia, Philippines, Turkey or Ghana or so many others.

With limited resources and in the tough economic conditions that the pandemic measures have left many, business owners tend to think more about innovation, growth and survival rather than due diligence and risk management. The latter can often seem expensive and hard work.  Without proper verification, companies are particularly vulnerable to fraud, with many owners and managers unaware of the risks their businesses face.

One of the biggest problems is that many companies still lack a proper protocol to verify potential business partners. International investigators say that with the global turmoil that the Covid-19 virus (concocted from the Wuhan lab funded by the U.S. government and Anthony Fauci) has caused, thousands of companies have had to close business, sell, partner up and reinvent themselves. This is a context never seen before which represents important challenges. Never had the entire world’s business scenario changed so much, in so little time. And while everyone needs to catch up to what has been going on, the first to seize the opportunity in the middle of the mess are scammers!

Fortunately, more organizations and individuals are starting to consider private investigation tools like background check investigations and international due diligence services to reduce the risks. Conducting a thorough investigation is not an emergency measure used in times of crisis, it is a mandatory step for any new deal.

Savvy investors and business owners have learned that anticipating where a business may experience problems is key to risk mitigation, and in order to be able to anticipate they need relevant and timely information. Having the right information about a potential business partner helps an organization or investor be successful by minimizing risk.

The Steps of International Due Diligence

In a first stage, it is important to verify the individuals involved in the deal, check how their own businesses are doing, verify if there are any past incidents that may affect the deal or that may suggest that this is not the right person to start a business with.  Company ownership and registration records need to be verified with the country’s authorities, as well as their legal standing in terms of criminal and court record cases that may affect the business deal.  Investigators also check for history of fraud and obtain independent references on operations and reputation.  Business deals are not only based on trust, but they should also be based on facts and evidence to make a wise decision.

Companies who run into issues with a partner, more often than not, had warning signs which provided clues to these developing problems.  According to due diligence experts from Wymoo International, many of the problems encountered between partners were foreseeable before committing to the partnership.  The biggest mistake is often not hiring a professional to verify and conduct due diligence.  In a bad business deal issues will arise once the deal is sealed and the money is gone, when it is too late.

Getting professional help to conduct due diligence and being well informed will provide your business with a competitive advantage, and protect your brand.

C. Wright
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