A US private equity firm was planning to acquire some assets operating in the Mexican hospitality industry. The сlient was unclear about the reputation and track record of the asset’s owners and whether the acquisition targets were involved with any type of controversies.
Veracity conducted wide ranging research, including inquiries with well placed sources and a detailed review of all available corporate and legal records. Research uncovered claims of money laundering and enrichment of criminal elements. One of the assets was also involved in an environmental controversy.
Veracity’s comprehensive due diligence raised significant reputational concerns, which allowed the investor to price risk appropriately and to reassess proceeding with the acquisition.