What you don't know can hurt you!

Emerging markets offer opportunities, but they also present investors with a different set of risks. The transition of individuals, organisations and practices from the pre- to the post-1989 periods will be an important concern to new entrants, but also to existing players in search of new business partners or assessing new opportunities. This area requires careful interpretation: even seemingly bizarre facts must be put in a rational context in order to be properly understood.

We use our years of experience bridging cultural gaps and “reading between the lines” and call upon our trusted network of sources from academia, Government and ex Government, the Legal and Accounting professions and business at large. Often clients utilise this service in conjunction with "Buy Side Advisory" services.

Our business intelligence work is performed jointly with one of the very few Romanians specializing in this sensitive area. Having a background in the sciences, long experience in business and investigative reporting, a well as an MBA, our partner is well equipped to look thoroughly into issues that by their nature lie at the often blurred intersection of business and law.

We begin any assignment by identifying the particular risks that might apply to the client’s potential business transaction. These risks are commonly related to:

	Weak corporate governance mechanisms, increasing the potential of manipulations of ownership and control or the conduct of non-arm's length commercial relationships;
	Consolidation of existing lenders to a new lender
	Company law being inadequate, leaving investors (particularly minorities) unprotected in the event of disputes. The likelihood of such disputed has therefore to be thoroughly assessed prior to making the investment decision;
	Corruption, and effect on the practicality of judicial processes and remedies;
	Regulators, who can be less than independent and subject to manipulation and pressure from political or commercial interest groups; # Ministries, which may be subject to manipulation and various pressures.

We can provide background checks and follow up references of key potential employees, whose integrity will be vital to any successful operation. The same applies to potential business partners and the entire array of significant stakeholders. Our reports go well beyond simple answers to questions as to whether these people have been involved in outright illegal activities or shady business dealings. We also assess less well-defined issues such as reputation, reliability, real and/or perceived expertise.

As “Business Ethics” fever grips developed markets and companies rush to appoint “Ethics Officers”, we analyse the pervasive culture of an organisation at a more fundamental level. This is especially important in ex State-owned enterprises where “companies within companies” and secret management-owned trading companies routinely served as mechanisms to defraud the public.

Beyond the boundaries of the target organisation, our reports include thoroughly researched political and economic analyses, which provide valuable insights into the often obscure decision making mechanisms, and point to real, yet elusive power brokers working behind the scenes.

Upon completion of certain transactions, we can stay “on board” (literally), through our appointment as Board Representative on behalf of the client. In addition, we can provide assistance in monitoring investments (see Board Services).