Mandate
Our client, a Canadian Private Equity firm, was interested in acquiring a private, family-owned business in the United States. The target was in the consumer goods sector and had an extensive supply chain that had inputs from around the world. The client wanted reputational and financial due diligence conducted on the business and its business practices. There was also need for the global supply chain to be examined for geopolitical and sanction risks.
Open-Source Intelligence: The client had already conducted extensive open-source intelligence, but ADIT was able to go further to uncover legal matters and other ethical questions. Open-source work also confirmed supply chain vulnerabilities that could impact valuation of the target.
Human Intelligence: ADIT correspondents conducted extensive field investigation into the reputation and conduct of the target and its owners. This investigation raised several areas of concern from both a legal and an ethical point of view. Risks associated with business practices, ethics and supply chain vulnerabilities led the client to reevaluate the acquisition.
Result
The ADIT Intelligence Report provided the client with critical information that led the client to pause the transaction and seek to limit risk from business practices and ethical questions. Valuation was also reconsidered.
