Due Diligence (Real Estate)
Case: A large Private Equity firm was investing in a real estate company in India.
Methodology: Our due diligence team carried out intensive search including registration checks, database checks, litigation history, and reputational intelligence. Primary source inquiries were made to ascertain the reputation of the subject entity and its key principals. Another key aspect of the due diligence exercise was to divulge the current hidden sources of investment into the subject entity. Researchers got in touch with industry KOLs, brokers, former employees, and close associates of the subject entity.
Risks Identification: Comprehensive due diligence efforts revealed that the subject entity was getting a major chunk of its investment from a group of people highly connected with the political parties in India. It further unveiled close affiliations of the key principals with the local state government leaders. Thus there was a potential risk of not getting new land acquisition approvals, projects getting stalled, in case of a changed political scenario.