Mandate
Our client, a Canadian Pension Fund, was interested in acquiring a European company in the ICT sector. The target had a complex corporate structure with a large number of subsidiaries. The client wanted an assessment of business practices and the ethical conduct of their leadership teams.
Open-Source Intelligence: The client had received considerable disclosure from the target, but it did not have much detail on the subsidiaries. ADIT was able to perform considerably more open-source examination of legal and reputational issues for the subsidiary corporations and their executives. This helped the client understand the ecosystem better and further focus the due diligence investigation.
Human Intelligence: ADIT correspondents conducted extensive due diligence on the subsidiaries. Minor issues were raised that had not been disclosed at several of the companies. One serious issue was uncovered related to conduct at one of the subsidiaries. The client was able to take this specific issue into consideration and mitigate reputational risks ahead of the closing of the transaction.
Result
The ADIT Intelligence Report provided the client with critical information related to the web of subsidiaries that were owned by the target company. The Report also allowed the client was able to mitigate the reputational risks associated with one of the subsidiaries before finalizing the transaction.
