Look Before You Leap: Managing Risk in Global InvestmentsResults of background checks led many participants to renegotiate or withdraw from deals, partnerships and investments |
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Deloitte Financial Advisory Services is pleased to present the annual "Look Before You Leap" survey on how companies are using background/integrity checks to manage the risks inherent in investments and new business relationships outside the United States. In addition, this year’s survey also addresses how companies are complying with the U.S. Foreign Corrupt Practices Act (FCPA) and the challenges they are facing.
The survey indicated that, as a result of background checks, more than half of the participants renegotiated (59 percent) or pulled out (55 percent) of a potential investment. The most common reasons for renegotiations and deal withdrawals were:
- Lack of transparency in contracts (61 percent)
- Unusual relationships with third parties (48 percent)
- Use of agents to obtain business (38 percent)
- Lack of background checks by survey respondents before committing to transactions outside of the United States (31 percent)
Read the complete "Look Before You Leap" survey report attached below to see what else 216 senior professionals had to say.
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As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
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Look Before You Leap
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