Client Type: A non-UK software company specialising in an industry-specific niche.
The Brief: The client had identified three potential partners for marketing their software in the UK. It was important that any partner had the capabilities to not only supply the software to organisations in the relevant niche but also support end-users. Of the three companies, one was the preferred partner and we were asked, initially, to focus on this company. Our client needed to verify the company’s history, reliability, reputation, integrity, and potential red flags before any agreement was signed — particularly relating to regulatory, IP, or confidentiality risks. Essentially, we were told to “dig up any dirt” that existed.
Our Approach: We carried out detailed due diligence: market research, public records search including financials, analysis of promotional material, interviews with former employees and business associates, identification of, and interview with, customers beyond the reference list supplied by the company.
The Result: Our investigation uncovered major discrepancies between the preferred partner’s public claims and independent feedback. Financial analysis showed a deteriorating position, including evidence of a failed investment and a debt judgement. Our client’s initial checks had missed some of this because they were unaware of the full range of public records available in the UK and had relied too heavily on information from the target company.
We also identified undeclared links between directors and other companies, as well as misleading statements about capabilities and expertise. Interviews with around 50 current customers (identified from a trade association membership list) produced largely unfavourable views.
Based on our findings, the client opted for the third company from their shortlist — avoiding a potentially costly and reputationally damaging collaboration.
Key Takeaway: Good due diligence goes beyond financials: reputational history, supply-chain integrity, and human factors often reveal the most significant risks.
