ISOTERIX was contacted by a leading UK law firm to support a due-diligence process of a bank acquisition. The basic agreement between the parties was already in place, but through the due-diligence process, done by the law firm, several unclarities were raised without concrete information to support them.

 

The client was willing to finalize the bank acquisition, due to other business activities in the region and set a time frame of 2 weeks to finalize the due diligence with concrete facts to support a “Go – No Go” decision.

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Our team performed a complete business forensic analysis of the bank, the seller and his entire business structure, subsidiaries, related business entities and key partners and collaborators. Alongside to the remote search and cyber analysis, a detailed on-ground operation was launched to examine the operation of the local activity. In the short time it was discovered that the seller’s activity is based on shell companies with no real activity behind. A deeper intelligence activity revealed unpublished debts both by the bank and the seller, which were hidden in a sophisticated way, but will surely pop up after the sale is completed and will apply to the client (the Buyer)

 

A complete report was issued to the legal firm and the transaction was cancelled.

 

The operation results:

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• ISOTERIX managed in 2 weeks to obtain evidence of misconduct in the due diligence process.

• In case of buying the bank, it would be resulted in a loss of 350 million EURO to the buyer. The acquisition was stopped based on ISOTERIX due diligence report.

• The client was remunerated by the seller in the due diligence costs, based on the seller misconduct and fraudulent behavior.