A merger and acquisition investigation is often one of the first steps in prudent due-diligence when one corporation is looking to buy or merge with another.
Caveat emptor. Buyer beware. Consumers often find themselves thinking this when considering whether or not to test out a new product or replace a used one. After all, knowledge is power when it comes to your dollar. Now imagine that the product is not just a new shampoo or brand of cereal, but an entire corporation. Corporations who are flirting with the idea of a merger or acquisition regarding another company have a monumental task before them of performing due-diligence in fact-finding missions about these companies before they buy. If it is a publicly traded company, then a great deal of information about it will be accessible, but what about what’s not on paper? What about the staff, the internal operations, the unmitigated risk factors that could be inherited? A private investigator might be the perfect professional to conduct fact-finding in a merger and acquisition investigation.
Private investigators have the tools at their disposal to get the full picture when it comes to a prospective merger or acquisition. Private investigators have a similar investigative tool chest as law enforcement. It’s not uncommon for private investigators to be former law enforcement personnel. They are adept at moving within the environment unseen as observers, meticulously documenting what they see. They can get an unvarnished snapshot of how the business operates on a daily basis, how engaged the employees are, and how those things impact the daily output. They are adept at developing rapport with witnesses in order to get robust answers to pertinent questions regarding the investigation. Private investigators can also use databases similar to that of law enforcement to develop comprehensive background checks on the people in leadership of the company in order to determine within reason what is their risk of misconduct or negligence. Reviewing items like criminal history, address history, litigation history, and work history, they can profile the decision makers, document their history of decision-making, and how their relationship with their employees impacts the corporate culture of the company.
When it comes to a merger and acquisition investigation, a risk management firm might be the first entity that comes to mind. Private investigators and risk management firms often possess similar investigative methodologies in their experience with observing patterns of behavior and predict multiple outcomes within reason. Private investigators might have unexpected insight into mergers and acquisitions, because while the product, the brand, and the value are all critical factors in these corporate marriages, it is truly the human element that makes or breaks a business. Not unlike law enforcement, private investigators make their trade in analyzing and anticipating human behavior in order to develop leads for their casework. Their diverse experience in this arena allows them to conduct an evaluation of the business that goes beyond numbers and profit, but also how the dynamics between employees and the corporate culture will ultimately affect the parent company’s bottom line. If the private investigator finds that the company experiences repeated disruptions to operations due to inefficiency, apathy, or negligence, it further exacerbates the causation of these disruptions. The corporate culture declines and employees become more apathetic and disengaged. Without major overhaul to the corporate culture, the entity looking to buy might reconsider. When a company has a pervasive problem with employee misconduct of all kinds, including sexual harassment, discrimination, theft, and a high rate of turnover might be flagged as an unadvised risk by private investigators and risk assessment firms alike. The quality of corporate culture moves in a cycle based on how well it meets the needs of everyone involved in the workplace. When that corporate culture is consistently poor, these companies regularly open themselves up to costly turnover, employee theft, and legal action. If your company is involved in a merger or acquisition with another company, consider hiring Lauth Investigations International for your intelligence needs. Our team of private investigators is comprised of former military and law enforcement personnel who are ready to get to the truth for our clients. We’re adept in undercover and surveillance operations and carry an A+ rating by the Better Business Bureau. Call today at 317-951-1100