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“Traditional due diligence often misses the most important”

Published: April 4, 2023, 10:00 a.m. Updated: April 12, 2023, 9:22 p.m.Human capital is business life’s most important asset – and biggest risk factor. Investing in the wrong individuals can lead to many types of problems and big losses. With Look Closer’s Integrity Due Diligence service, investors and company buyers ensure that they get as detailed a picture as possible of the background and characteristics of relevant key persons. Personal risks are often a blind spot during the due diligence work of M&A transactions and investments. How do you ensure that the senior executives in a company have clean flour in their bag? How do you create a complete overall picture of the key people who make up an essential part of the company’s value? Look Closer has long experience in helping to straighten out these question marks. The work takes place under great discretion as it is often crucial that information does not leak out to the market or competitors before everything is ready. – Our special area is Integrity Due Diligence, which we have worked with for over 20 years. Despite this, the concept is not yet very well known in Sweden, but we see that interest is growing and that the need is great as traditional due diligence often misses the most important thing, says Björn Modée, Look Closer’s CEO. Distinctive for Look Closer’s clients is that they are among the most thorough and professional in their industries. Private equity is the single largest client group, but Look Closer’s clients can be found in a wide range of industries. More and more companies realize the value of not limiting themselves to traditional due diligence where the focus is on finance and law. Look Closer’s in-depth personal reviews can make visible negative historical events that may have been hidden from the outside world for many years. It can be about everything from exaggerated academic achievements and questionable tax planning to problematic bankruptcies and criminal convictions.Nothing is as business critical as collaboration with people– Our review also contributes to providing a deeper and more nuanced picture of the individual, for example the extent to which he is prepared to take risks and other relevant driving forces, continues Björn Modée. Among the customers, there are many who testify to the benefits of carrying out an Integrity Due Diligence. Since 2016, nearly every tenth of Look Closer’s assignments in connection with acquisitions have resulted in the investment process being interrupted. For the customers, who not infrequently manage other people’s capital in the form of pension funds, it is about significant amounts that could have been saved from ending up with unscrupulous actors. – Of course, it is never positive to have to interrupt a process, but the alternative would have been significantly worse. Many billions could have been lost if our clients had gone ahead with these deals, says Arun Kaul, partner at Look Closer. But in many cases, an acquisition can also be saved by acquiring more in-depth knowledge and understanding of what happened. Unsuitable people can perhaps be replaced and the customer gets an opportunity to act proactively rather than being forced to react to external questions, for example from the media.Discreet inquiries provide an overall pictureLook Closer primarily uses public documents and other open sources in an audit. This is often supplemented with discreet inquiries where people with relevant knowledge and experience are interviewed. – Our experience is that discreet inquiries can fill gaps in the review but also nuance individual findings in the open sources that might otherwise stand out in an abnormal way, says Arun Kaul .About Look CloserLook Closer was founded in 2002 and is the leading advisor in Integrity Due Diligence in the Nordics. The company has global coverage and helps clients with the review of key persons before business-critical decisions, for example in acquisitions and strategic collaborations. Take part in insight reports and testimonials from customers here! The article is produced by Brand Studio in collaboration with Look Closer and not an article by Dagens industri

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Marine Le Pen: We reap what we sow

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