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Manage Business Risks With Due Diligence in Ecuador

Manage Business Risks With Due Diligence in Ecuador

When doing business in Ecuador, managing your business risks with due diligence is essential to achieve success. Entrepreneurship in a new market entails facing different barriers. These include linguistic or cultural barriers, as well as lack of local market understanding or know-how. Buying existing companies or partnering with locals are key ways to mitigate these challenges and obtain support for navigating an unfamiliar market.  However, it is essential to protect yourself in Ecuador by conducting exhaustive due diligence controls on the companies and people your business works with. This process minimizes the risk in a transaction by conducting detailed and independent analyses. Here we outline information about due diligence in Ecuador and how to manage your commercial risks. Due diligence to prevent money laundering in Ecuador The Financial and Economic Analysis Unit of Ecuador defines due diligence as developing a set of actions, in the most efficient and diligent way possible, to adequately know your clients. As a result, your company can know who, due to their activity or condition, is more likely to conduct money laundering, finance terrorism or be part of other crimes. As a new investor in the country, it is important to take into account the sector that you enter. The regulatory body of the sector is the one in charge of reviewing procedures for preventing money laundering locally. Why is it important to conduct due diligence in Ecuador? Due diligence in Ecuador lowers your risk of partnering with companies that have questionable backgrounds and...

Why Get an Entity Health Check in Australia?

Why Get an Entity Health Check in Australia?

Getting an entity health check in Australia is a vital step before incorporating a company in the country.  As it becomes an exciting destination for foreign investors, Australia offers a favorable business environment, promoted by a dynamic and competitive economy. Thus, an entity health check will allow you to access critical information to understand the risks and opportunities when doing business in Australia.  In this article, we will explain what an entity health check is and how beneficial it can be for your company.  What is an entity health check in Australia? An entity health check in Australia calculates potential risks and challenges for a business. An entity health check in Australia is the best way to identify and calculate the risks and challenges executives may face when expanding their business in the country. It relies on a due diligence process to determine whether a company is fully compliant with local regulations or not.  In the same way, an entity health check refers to a detailed professional investigation that examines a company’s legal and accountancy data, human resources processes, and environmental practices to calculate future contingencies.  Evaluating legal, financial and other aspects An entity health check may vary in terms of extension, scope, and depth. It can include legal information but also commercial and financial records. A basic entity health check should cover the following aspects: Basic company details such as the name, commercial address, type of industry, and shareholdersLicense numbers, operational...

Empower Your Business Through Due Diligence in Chile

Empower Your Business Through Due Diligence in Chile

Conduct due diligence in Chile before purchasing an existing company, partnering with an unfamiliar organization, buying assets or hiring staff. As the term due diligence suggests, it is about acquiring all legal information about the target to avoid issues after the transaction. This could involve collecting information about a company, property, or individual's criminal record history. Due diligence provides you with information, and the right information eventually reduces the risk of your investment in Chile. What is due diligence in Chile?  Conduct due diligence in Chile before purchasing an existing company, partnering with an unfamiliar organization, buying assets or hiring staff. Due diligence is a thorough scan of data to get information. Due diligence processes may involve companies, purchase of assets, human resources, or the state of operations (e.g. business in other countries). Due diligence provides you with all the necessary information you need to know in order to make informed decisions with calculated risks. It is important to take necessary precautions to protect your company through adequate risk management. When expanding into a new market, such as Chile, you may have some questions about building connections in the country, including: Can I trust my joint venture partners and my distributors?Who can I trust to be my local representative?Are there any inherent risks that I need to know about?  Challenges for businesses in Chile Culturally and commercially, there are specific aspects that could make it more challenging for foreigners to do...

Mitigate Your Business Risks with Due Diligence in Brazil

Mitigate Your Business Risks with Due Diligence in Brazil

Understand how to manage your business risks with due diligence in Brazil. Brazil's favourable conditions for doing business and consumer market size attract many multinational companies looking to expand into Latin America.  Brazil has several legal peculiarities that impact companies' way of doing business that they must be aware of. Additionally, it is important for companies to accurately understand and make informed decisions on the level of risk they face when engaging new partners or contacts, buying existing companies and assets, and hiring staff. In order to invest in a pre-existing company in Brazil, the investor should carry out comprehensive due diligence in Brazil. This means clarifying the legal and financial health of the company, among others. When should I carry out due diligence in Brazil? The purpose of due diligence is to help business owners understand any applicable risks to business activity and make informed decisions about those risks. The purpose of due diligence practices is to help business owners and decision-makers understand any applicable risks to business activity and make informed decisions about those risks that align with the best interests of the company. Executives may choose to undertake certain due diligence processes in Brazil when: Purchasing an existing companyPurchasing company assetsHiring specialized or senior staffPartnering with or contracting an unfamiliar agencyForming other key working relationships with individuals or organizations. Due diligence practices analyze relevant legal, financial, and background information in...

Manage Your Business Risks With Due Diligence in Bolivia

Manage Your Business Risks With Due Diligence in Bolivia

Due diligence in Bolivia is the best way to ensure the safety and security of your business operations in the country. Future business executives should be aware of the challenges they may face when doing business in Bolivia, such as the local legislation, market behavior, and appropriate risk management. Undertaking due diligence processes will significantly improve your ability to make informed decisions when doing business in Bolivia. These processes provide business owners with critical information about companies and partners, including an extensive analysis of financial, legal, labor information, or even environmental practices. Carrying out due diligence will significantly improve your possibilities of making better decisions when doing business in Bolivia. Understanding due diligence in Bolivia Processes for due diligence in Bolivia for market entrants include in-depth investigations to analyze the profitability of expanding a new business. Collected information helps to evaluate the risks that executives may face. A local third party can carry out the appropriate market research to give comprehensive and knowledgeable feedback to the company. Both parties can operate under a confidentiality and exclusivity agreement to undertake this work. With the information gathered from due diligence research, executives can understand potential strategies, liabilities and contingencies to enter the market. Why is due diligence important in Bolivia? Bolivia’s economy has grown considerably in the last few years due to the extraction and export of natural gas, silver, zinc,...

Manage your Business Risks with Due Diligence in Guatemala

Manage your Business Risks with Due Diligence in Guatemala

When doing business in Guatemala, managing your business’ risks with due diligence practices is essential to its success and longevity.Language and/or cultural barriers, understanding the market and the way of handling businesses are challenges that foreign business owners face when expanding abroad. Buying existing companies or partnering with locals are key ways to reduce these challenges and get support navigating an unfamiliar market. However, it’s imperative to protect yourself when undertaking either of these processes by conducting thorough due diligence checks in Guatemala of the companies and people you will surround yourself with.Find out more about due diligence in Guatemala and how to manage your business risks. What is due diligence in Guatemala?  Due diligence refers to the process of thoroughly reviewing and analyzing available information of a company. Due diligence refers to the process of thoroughly reviewing and analyzing available information of a company. The focus of this analysis is primarily set on economic, legal, tax and financial circumstances of a company.  What is the purpose of due diligence?  The general purpose of due diligence is to conduct a risk assessment as part of the process of buying a company, hiring new staff or partnering with other organizations. However, conducting due diligence in Guatemala brings more advantages.The main objectives of a due diligence analysis are:  Reduction of information asymmetries between buyer and sellerEstablishing a basis of trust between buyer and seller through transparencyAnalysis of...

Manage Your Business Risks with Due Diligence in Panama

Manage Your Business Risks with Due Diligence in Panama

Managing your business risk with due diligence in Panama while doing business is a key aspect for having an operational company.  Foreign executives face various challenges when entering in a new country. Language barriers, different legal frameworks and cultural expectations can be difficult to understand. Therefore, business owners choose to buy operational companies to start doing business immediately.  Due diligence in Panama as in other countries offers certainty about operational aspects of the company you’re managing, buying or merging. Undertaking due diligence activities will certify the health of the company and if is convenient for starting a business.  The main objective of carrying out due diligence in Panama is to reduce risks by analyzing the operations of the company and validating they comply with local legislation and institutional authorities. Executives need to consider that a sanction from an institutional authority affects the economic growth of the company and even bankrupt it. Why is due diligence important in Panama? Panama is an attractive country for foreign business due to its diversity, strategic location, and business opportunities. Panama is an attractive country for foreign business due to its diversity, strategic location, and business opportunities. According to the General Comptroller (Contraloría General de la República) in 2019 there were 26,000 registered companies, which represents a 4.6% increase in relation to 2018. Furthermore, there were 299 company merges.  Buying an operational company is a common practice...

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