Due Diligence Case Studies

The case studies below provide examples of the type of work Quest conducts for its clients. For further information about the type of work Quest can undertake, contact the company at info@quest.co.uk or telephone on 0207 387 7993.

Joint Venture Partner

A multinational company aiming to open a new business in the Middle East was seeking a local partner to form a Joint Venture. The client had asked the local UK Embassy for advice, but had received very little information in response. Quest was instructed to investigate the background of a potential partner, and confirm his suitability. The target of the investigation was found to have business interests in the UK and these were investigated. Quest found that the UK end of his business was in effect non-existent and was registered at a rundown residential location in South London. This caused some concern to the client, who had been led to believe that the individual had access to considerable wealth. Quest pursued its investigation overseas and gathered information showing the individual to have a good reputation and good access to local investors. Quest was also able to identify and speak confidentially with individuals from other European companies that had partnered successfully with the individual. The client was able to pursue the joint venture with increased confidence.

Executive Background Check

A private equity house, looking to appoint an executive to one of its portfolio companies, instructed Quest to confirm the suitability of a candidate for the post. Quest researchers conducted extensive open source research, checking particularly for any evidence of regulatory offences, and verifying information detailed in the candidate’s curriculum vitae.  More significantly, Quest was able to gather information discreetly from various sources which gave greater depth to the client’s understanding of the candidate’s profile. Quest was able to identify that the candidate had exaggerated certain achievements, and had often found himself in conflict with others. The client went ahead with the decision to employ the individual, but was able to manage the risks identified by Quest’s research.

Understanding Investors

The Chief Executive of a FTSE 100 company instructed Quest to investigate the background, motivations and likely course of action of an activist investor who had discreetly built up a significant stake in the company. Quest identified several previous interests of the investor, showing how he had built up his stakes, and what exit he had sought. Quest interviewed previous targets of the investor and gathered information relating to the policies of the fund that the investor was acting through. Using this information, the client was able to plan its response. The investor attempted to block a strategic merger, but the Board had campaigned among other shareholders and was able to implement its planned strategy - winning 85% of the shareholder votes.