The Situation

Conduct due diligence to confirm the reputation and business practices of a potential JV partner in Vietnam

  • Tractus was engaged by a global financial services company to conduct detailed due diligence on a local Fintech company and its principals with special emphasis on their business practices, and integrity.
  • Due diligence results were to be used by Tractus’ client to make a well-informed decision regarding the suitability and risks of entering into a joint-venture partnership.

The Project

“Peeling the Onion” during due diligence requires experienced research skills and dedicated effort

  • Tractus familiarized itself with the structure and dynamics of the industry to prepare for face-to-face interviews with industry leaders and other sources. Our experience has shown that only an informed and engaged interviewer can guide the discussion in the appropriate direction to obtain information of highest value.
  • Tractus conducted secondary research on the company and its principals reviewing public data, business license registration records, news and all other sources where the company or its principals were mentioned, in both Vietnamese and English.
  • Identified informed financial services sector sources who would have direct knowledge of the target company’s business and or its management.
  • Finally, Tractus conducted interviews with more than 20 individuals collecting pertinent information about their experience with the management team of potential partner.

The Solution

Tractus uncovered previously unknown business risks despite the untarnished reputation of the target company

  • Tractus’ confirmed the solid business reputation of the management team, their integrity as well as non-existence of litigation records or evidence of unethical business practices.
  • However, some previously unknown legal risks related to the ownership of the target company’s brand were uncovered, as well as the fact that the company was operating within an unregulated legal framework. The unregulated market segment they were operating in was subject to the risk that the government might pass laws or regulations restricting the company’s capacity to operate in the sector.