Forward Risk was engaged by an international law firm to conduct a deep dive investigation into an engineering and consulting firm in advance of a buy-side M&A deal.
Our methodology consisted of an in-depth public records review that covered business and litigation records pertaining to the subject and its executives, as well as watchlists, news and social media, and other relevant open-source material. In particular, our investigation focused on matters likely to impact the M&A process, such as adverse information regarding the professional history of subject company executives, and undisclosed connections to potentially problematic entities or individuals.
Our investigation ultimately revealed several salient pieces of information. Notably, we discovered that a lawsuit was filed against the subject company’s founder in the early 2000s by a former employer, alleging that he had misappropriated confidential information to support his early work at the subject company.
Furthermore, the founder had been accused of misleading a venture capital investor when seeking funding for the subject company. In addition to the founder’s questionable history, we also discovered potentially problematic ties to the subject company’s principals, who were discovered to be the sons of an important foreign politician, as well as heirs to a shipping company operating out of a high-risk jurisdiction.
These findings equipped the client with key contextual information during the M&A process.