Forensic due diligence should be your first step when planning an investment!

Risks are inevitable if you are a business leader considering investing in mergers, acquisitions, or other partnerships to gain business value in a competitive business landscape. Also, while exploring funding opportunities from investors or external partners, who can be promoters or companies, making informed decisions isn’t an easy task for entrepreneurs. Today’s smart businesses are able to unmask the promoters and businesses that can be potential threats, with forensic due diligence expertise of reputed companies like Netrika. 

Preventing information security threats in 2020

5G, IoT, etc. are 2020 trends that have the potential to empower businesses with cutting-edge technology. However, new trends can make the tech infrastructure of organisations more vulnerable to cyberattacks. Therefore, information security infrastructure of your vendors, business partners, and potential partners have to be at par with the latest security standards to prevent cyberattacks. 

With the GDPR and Indian Data Protection Act (Proposed Bill), it would be mandatory for companies to keep a check on their data protection and IT security. In the event of a data breach, two percent or four percent of the annual global turnover of a company, as applicable, can be lost to fines and penalties by the regulatory authorities. So, to avoid any data breach issues, data security becomes a required parameter during the due diligence process to be followed post-investment for investee companies across sectors. 

As an experienced forensic due diligence mediator, Netrika enables businesses with an assessment of risks in major operational areas of potential partners. This, in turn, protects the reputation and stability of an investor in the long run.

Using transactional-level analysis to market intelligence for opportunity assessments

Public firms, private companies, and other organisations can confidently pursue valuable opportunities, by utilising these due diligence capabilities available today:

  • Contract and support documentation analysis for M&A transactions

Pre-acquisition forensic due diligence for a potential transaction can be utilised to get the best deal value by minimising risks related to trading restrictions, third-party integrity, corruption, conflict of interest, and others. M&A risk assessments include identifying critical contract terms, contact analysis, transaction testing, etc. 

  • Background checks for financial due diligence

With advanced technologies and analytics, misappropriation of funds is easier today. Misrepresentation in M&A transactions lead to loss of business value for reputed companies. With due diligence background checks, the integrity of businesses and people associated with businesses can be verified. 

  • Evaluations for finding the right business partner

Entrepreneurs seek business partners or investors, not just to bring in money or capabilities, but also to team up with like-minded teams/individuals who elevate the business value and company vision for scaling new heights. To understand the background of companies and promoters, background checks such as criminal background, share capital, social media associations, etc. are conducted. 

  • Due diligence for start-ups

When venture capitalists and angel investors show interest in your start-up, a forensic due diligence company like Netrika can step in, to study your start-up business. Assistance is provided to create business plans, conduct vendor due diligence, etc. Netrika’s due diligence support also includes preparation of NDA, negotiations, meetings, and due diligence assistance until the closure of a deal with investors. 

  • Trusting third-party vendors 

Businesses need to work with counterparties for smoother supply chain management, digital transformation, customer support, etc. For organisations with a stable business environment, any linkages with a third party or outsourcing partner without due diligence can attract certain risks. These risks could arise from the potential partner’s involvement in faulty trade practices such as bribery, product piracy, quality issues, regulatory non-compliance, corruption, Intellectual Property (IP) theft issues, etc. Third-party vendor due diligence can ensure that these partnerships do not negatively influence the reputation and regulatory standing of your organisation in the business community.

Netrika’s due diligence shapes profitable and purposeful relationships

Forensic due diligence is invaluable for informed decision-making during business transactions, mergers, acquisitions, strategic alliances, joint ventures, partnerships, and collaborations. Netrika’s counterparty due diligence experts consist of experienced legal consultants, auditing specialists, investment bankers, risk managers, business strategists, and others who work together to keep potential risks under control.

Services by Netrika include forensic investigations, due diligence, GDPR compliance, information security, security & risk consulting, background checks, brand protection, and others. Counter Party Due Diligence (CDD), Senior Management Due Diligence (SMDD), Integrity Due Diligence (IDD), and Vendor Due Diligence (VDD) are part of due diligence services by Netrika. 

Some of the key advantages of due diligence for businesses are listed below:

  • Information from reputable sources can be compiled by experts to understand the true valuation of assets, warranties, and other areas. 
  • Netrika’s forensic due diligence explores aspects beyond financial statements. Insights from such evaluations can assist you to take sound decisions and manage risks involving a conflict of interest in business. 
  • You can prevent collaborations or partnerships with individuals having a history of business manipulations, siphoning or embezzlement of funds otherwise meant for general corporate purposes, or involvement in other unethical business practices. 
  • Due diligence can alert you with an assessment on the aggressive controls used by owners of a company over their management. Validating the details provided by prospective business partners through the shield offered by due diligence can prevent your company from bad business transactions. 

At the end of the day, due diligence is all about doing your homework to keep your organisation away from undesired business transactions and losses, and this is a continuous monitoring process. Growth is sought by every business, and businesses thrive when they take calculated risks through strategic investments and partnerships. Forensic due diligence services provided by firms like Netrika support cautious businesses to make the right moves while exploring business opportunities through M&A, PE investments, third-party integrations, etc.

To know more about Netrika, visit

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