We undertake risk analysis and due diligence investigations prior to acquisitions, joint ventures or investments. Ideally, we are engaged at an early stage before legal costs and other professional fees are incurred; as this will mitigate the impact if adverse legal, financial or operational issues come to light.

We provide detailed and cost-effective reports, prepared by a diverse team of specialists,  to enable our clients to make informed commercial decisions.

How we work

We operate internationally and can provide the following information for a company or individual:

  • Enhanced background.
  • Financial profiling.
  • Reputational screening, with a focus on red flags.
  • Politically exposed person (PEP) checks.
  • Litigation; historical and current.
  • Regulatory and compliance.

Pre-Transactional Due Diligence

We undertake risk analysis and due diligence investigations prior to acquisitions, joint ventures or investments.

Ideally, we are engaged at an early stage before legal costs and other professional fees are incurred; as this will mitigate the impact if adverse legal, financial or operational issues come to light.

We provide detailed and cost-effective reports, prepared by a diverse team of specialists,  to enable our clients to make informed commercial decisions.

We operate internationally and can provide the following information for a company or individual:

  • Enhanced background.
  • Financial profiling.
  • Reputational screening, with a focus on red flags.
  • Politically exposed person (PEP) checks.
  • Litigation; historical and current.
  • Regulatory and compliance.

Post Transactional Due Diligence

We can provide ongoing advice and monitoring assessments to ensure the effectiveness of regulatory compliance procedures.

This assures directors, shareholders and third-party stakeholders that constant monitoring is in place, helping to prevent exposure to potential corruption or internal fraud.

By identifying actual or potential occurrences of fraud, clients are able to act early to mitigate risk and avoid the reputational and financial cost of disputes such as:

  • Involvement in litigation.
  • Infringement of their intellectual property rights.
  • A money laundering investigation.

Financial/EAM

Matrix provides advice to independent investment firms, wealth advisors and External Asset Managers (EAMs), regarding the compliance issues associated with on-boarding new clients.

As EAMs are normally authorised by the Financial Conduct Authority (FCA), pursuant to the Markets in Financial Instruments Directive (MiFID), or the Alternative Investment Fund Managers Directive (AIFMD), the legislation for on-boarding new clients must be strictly adhered to.

Specifically, EAMs are required to have strict processes and procedures in place with respect to undertaking sufficient due diligence on their clients and/or investors. These procedures include:

  • Formal know-your-client (KYC) processes.
  • Verifying the source of client funds.
  • Risk profiling.
  • Implementing internal threat-matrixes.
  • Adherence to anti-money laundering regulations.
  • Suspicious transaction reporting.

The intelligence we provide enables EAMs and their partners to make well informed decisions about potential clients and assists with on-boarding procedures.

Due Diligence Explained

  • What is due diligence?

    By Definition – Due Diligence is a comprehensive appraisal of a business undertaken by a prospective buyer – literally by examining the minutiae of the acquisitions DNA – focussing on the company, assets, reported liabilities, intellectual property, operating and litigation history, together with robust background checks of the key management and decision-makers e.g. their track records, competencies, potential conflicts of interest and any political or criminal links.

  • What is Due Diligence and how you perform it?

    Due Diligence enables decision-makers to identify relationships that will serve in the best interests of their shareholders, customers, employees and brand.

    Due diligence helps investors and firms perceive the character of a deal, the risks concerned, and whether or not the deal fits with their portfolio. Primarily, undergoing due diligence is like doing research on a possible deal.

    Conducting thorough Due Diligence is critical to any successful acquisition. Without complete and thorough intelligence on the target company, it is impossible to make best-informed decisions on any potential business purchase or investment.

    Due Diligence is definitely not a one size fits all process. There are many different facets which can be deployed singularly or collectively depending on the client’s requirements, but the ultimate task of any Due Diligence is to transform assumptions into hard, actionable, facts. Incorporating OSINT (Open Source Intelligence) protocols into your due diligence process is key to getting the best possible Data and Information.

    It is also worth considering deploying HUMINT (Human Intelligence and or Human Source Intelligence) in the final process. Itself, HUMINT can be used in a variety of ways when conducting Due Diligence from discreet local enquiries around the target’s professional reputation, financial position, and social and business life.

    With this information, fully collated and cross-referenced the Due Diligence Report will summarise the overall commercial suitability of the acquisition and forward potential to the buyer.

  • Why is due diligence important?

    Without complete and thorough intelligence on the target company, it is impossible to make best-informed decisions on any potential business purchase or investment and no professional investor should consider a business deal or investment without a thorough Due Diligence Report.

    More commonly though, sophisticated investors go straight to Enhanced or Advanced Due Diligence sometimes called Deep Level Due Diligence. Enhanced Due Diligence takes the process to a much higher level of scrutiny, necessitating the deployment of all actionable assets including individual in-depth intelligence. This is commonly instructed where substantial transaction monies or say a leading Brand are involved.

    Generally, this work falls to Corporate Intelligence firms who are experienced in multi-disciplined tasking obviating the need for additional contract Lawyers, Accountants or Management Consultants.

    Due Diligence can also be the reasonable steps taken by a person to avoid committing a tort, breaching KYC (Know Your Client) protocols or other potential criminal offence.

  • What are the challenges of due diligence?

    The Professional Due Diligence Practitioner has many challenges in producing a definitive Report. These are further complicated with different types of M&A (Mergers & Acquisitions) structures and whether the purchase has any international facets it can also be difficult to ensure that the parties meet all applicable legal and regulatory requirements.

    Every investment is unique, therefore the processes have to be unique, designed and implemented to the investors exacting standards. The timelines can be agreed in advance but the timings involved in compiling either a Due Diligence or Enhanced Due Diligence Report depends on the size of the transaction and the ensuing investigative work required to complete the Report.

  • When to conduct due diligence and how long does it take?

    Today, major transactions are increasingly multifaceted. Whether you’re buying another company, selling off a division of your company or partnering with a new alliance, real deal value can often be blurry, at best. That is why it is essential and moreover, common practice for buyers more than sellers to retain a Professional Due Diligence Partner before they enter into any binding agreements.

    Due Diligence should be instructed before any negotiations are entered into. Sophisticated Investors know this and won’t even consider an investment further without a Due Diligence or Enhanced Due Diligence Report. Typically, these Reports take between 7 to 10 working days. Timely instruction also allows for the remedy of any problems that may arise from the process.

  • What are the different types of due diligence?

    There are many different facets to Due Diligence which can be deployed singularly or collectively depending on the client’s requirements, but the ultimate task of any Due Diligence is to transform assumptions into hard, actionable, facts.  With this information, fully collated and cross-referenced the Due Diligence Report will summarise the overall commercial suitability of the acquisition and forward potential to the buyer.

    The specific types of due diligence are of course specific to the individual project.

    Below is is an aide memoire outlining the most prevalent forms of Due Diligence:

    • Administrative
    • Financial
    • Asset
    • Reputation
    • Legal
    • Human Resources
    • Environmental
    • Taxation Liability
    • Intellectual Property
    • M&A (Mergers & Acquisitions)
    • Geopolitical Risk
    • Service Agreements
    • Credit Policy
    • Liability Insurances

    Other forms of Enhanced Due Diligence enquiries also include IT (Information Technology) networks, issues of stocks and/or bonds, R&D (Research and Development), and sales and marketing reporting.