How do traders ensure due diligence in high-risk countries?

In a seller’s market, transactions are fast; businesses are closed with less information than is ideal and the risks are high. In a buyer’s market, it’s all the other way around, but not exactly. Private equity and strategic buyers have significantly different requirements on International due diligence. The interest of a financial buyer may be limited only to those risks that impact the valuation, whereas corporate buyers need to consider factors that have long-term implications.

Some professionals conceptualize Global due diligence as a simple audit, but it is much more than that. The Due Diligence audit presents all the items of a legal risk analysis, complemented by opinions and suggestions of adequacy in order to solve each of the deviations identified in a company. In short: it can predict many problems even before they occur.

Why Worry About Audit Global due diligence?

Through an in-depth study of the company’s environmental, labor, health and safety, social security and legal aspects, the responsible auditors are able to conduct a complete diagnosis and present strategies that will certainly bring global improvements to their business. For this, it is essential to have the help of qualified professionals and your entire confidence during the process of International due diligence. It’s a complex job that requires extreme organization, but it will certainly bring numerous benefits, improving the company’s action strategies and allowing for safer steps.

Before You Begin

Set your goals. The clearer your goal for International due diligence auditors, the better the outcome will be.It is also very important to carry out preliminary work with the employees of your company, organizing a meeting to clarify what Due Diligence is, how it is done, who will be the employees and departments involved and, especially, what will be the objective of all the process – which, incidentally, is relatively long and will require good planning within the work schedule.

In order for the International due diligence audit to be complete and effective, it must cover all of the company’s activities, but this does not prevent Due Diligence from being performed for a specific subject. It is also important that it analyzes the past, the present, and the future so that it can make market projections and research into possible risks or instabilities. Check here.

The Due Diligence Audit Stages

Motivation is the first step, a kind of initial observation that allows the auditor to know the business, its main characteristics and to understand what the best work strategy in that environment will be. It also corresponds to the relationship of the auditor with the teams of the analyzed company. Its purpose is to understand the functioning of everything, the rules and strategies adopted for routine actions, etc.


Practice is the development of the work itself and includes the analysis of various documents, such as social contract, accounting books, certificates, information about employees, information about labor liabilities, fines, copies of minutes of meetings, activity and specific legislations responsible for governing its field of activity, etc. It may also be necessary to consult information in public bodies or in private companies that have contractual relations with your company. It is worth mentioning that even confidential information is part of this process, so it is important to sign a confidentiality agreement with the company responsible for Global due diligence. The greater the amount of information collected, the more precise is the result of the study performed.

The results

Result is the verdict, the final report that will list the problems encountered and the important strategies to solve them, as well as contain information about possible risks to your business. With such data in hand, it will also be possible to compare the situation of your company to the competition, if it is in your interest. After analyzing all the documents available, the outcome of the Global due diligence,  the professionals involved in the study will evaluate the data and generate a personalized and complete report, identifying the positive and negative aspects of the business, risk situations and then directing the company to strategies in order to improve all internal procedures. For more details, visit:

Please follow and like us: