While it’s easy to get excited about the prospect of a new partner or distributor, or inking a new deal with a potential big customer, it’s important to not lose sight of your export compliance program and do a little digging around to ensure your prospective partners or customers have a clean bill of health.
VEDP International Trade can help verify a potential business partner with due diligence reports provided by the internal research team, generally relying on internet sources. Or, a more extensive due diligence report can often be obtained from our Global Network of in-country consultants.
Our internal research team checks the Consolidated Screening List of Denied Parties, runs the company and contact information through international business directories to confirm legitimacy of records, and conducts basic internet research to confirm that there are no outstanding legal issues or other red flags that may indicate a scam or an export regulations violation.
Our Global Network of in-country consultants can take the search a step further by investigating a potential partner’s capabilities, legitimacy and financial strength and provide useful information gleaned from the local press, industry and financial contacts, interviews with references and other sources. We can often provide a listing of the company’s key officers and senior management, banking and financial information, and market information, including sales and profit figures, and potential liabilities.
Doing your own due diligence? Check out these resources:
International Trade Due Diligence: Protecting the Value of Your Transaction – Virginia State Bar, Virginia Lawyer Magazine
Due Diligence: The Three Buckets of Critical Information – David Braun’s Successful Acquisitions
“KNOW YOUR CUSTOMER” REQUIREMENTS AND DUE DILIGENCE STANDARD – Export-Import Bank of the United States
For more information or assistance with due diligence, contact your local Trade Manager.
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