a special supplement to ACC Docket
sponsored by Corporate Research and Investigations, LLC
Interested in authoring an
article for EMEA Briefings?
Visit www.acc.com/accdocket/
edguide.cfm, or contact
Associate Editor Joshua Shields
at j.shields@acc.com.
Buyer Beware: Do an Integrity
Check Before Conducting Business
in the Middle East
By Habib Khan, LLM ( habib@crigroup.com), Corporate Research and Investigations LLC
It’s a proven fact that what may seem
like gold in the international business
arena could quickly turn to rust if all
the parties involved are not properly
vetted. Here’s a case in point:
An investor in the United States was
interested in purchasing a major jewelry operation headquartered in Dubai. The jewelry
business painted a rosy picture of itself on
paper as one of the region’s most profitable
companies, and this attracted the eye of the
US investor. But an intensive due diligence
investigation conducted by a professional
background screening company based in
Dubai and retained by the US investor told
another story. The examination unearthed
numerous red flags that portrayed the jewelry
business as not only a risky investment but
also a potential liability.
In the course of the investigation, which
involved international public records searches
and local hands-on interviews to look into the
financial liabilities of the jewelry operation’s
directors and primary shareholders, it was
discovered that the jewelry company was in
the midst of liquidation proceedings, a major
factor not previously disclosed to the potential
buyer. Further research conducted at a local
level revealed that the company’s principals
were involved in several bankruptcy cases,
and that the company had been issued warnings by local regulatory agencies concerning a
host of collusive business activities.
Because these discoveries would have
been nearly impossible to uncover using
conventional internet-based search methods,
the potential buyer stood to lose his entire
investment had it not been for the business
background investigation conducted by the
screening firm.
1 Buyer Beware: Do an Integrity
Check Before Conducting Business
in the Middle East
By Habib Khan, LLM
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