The Challenge

A global fire protection sprinkler manufacturer conducted extensive negotiations and due diligence on a target with China and Taiwan operations.

Our Approach

Our team discovered critical data on non-GAAP record keeping and transfer-pricing practices between legally unrelated but obviously affiliated commonly controlled entities. This situation raised issues of management bona fides and ethical market practices and undisclosed potential contingent liabilities.

The Result

Our familiarity with business and legal operating realities and mentalities led client to reach the conclusion that sometimes deciding to NOT make an investment is indeed the correct answer to insure against the risk of past and future impropriety.