Acquisition of company with dubious owners
When a company acquires another company, it is important to not just look at the company itself, but also who is in management roles and who the owners are. Are there owners or individuals in management positions with links to irregularities?
A small Swedish industrial firm was in the process of acquiring another company. However, they received information that the contractor behind the acquisition object had financial problems.
The company therefore turned to 2Secure for advice. We suggested that they do a background check focusing on searching for links with individuals in associated industries or people with a dubious background.
Even in the beginning of our information retrieval, we found that the contractor had given an address they said was their home address, and where they had also held meetings. When we checked, we found that the individual was registered at another address. The address they had stated to be their home address was actually a previous partner’s home and registered address. The contractor also had individual liabilities in millions of kronor registered with the bailiffs. The individual had also declared a number of companies bankrupt. The object in question was owned by a Dutch company of unclear ownership. The only trace led to the Dutch Antilles.
The contractor was also a deputy in a company with serious financial problems in an associated industry. However, in our assessment of the purchase object, we found nothing noteworthy. In our recommendation to the customer, we suggested they continue with the purchase process, but that they should carefully check around ten points where there was uncertainty or risk that things were not quite right. Similarly, the planned acquisition would be carried out as a quick cash purchase with no further relationship planned with the contractor.