In Indonesia, SKAN-4X assessment service is assisting a client regarding the compliance of an M&A operation with a conflict of interest.
Context of the mission :
This client is questionnig the entry of its Indonesian subsidiary in the capital of a local group presenting a very strong growth. If the operation seems interesting from a strategic and financial point of view, the readiness of the local manager to complete the deal is surprising him.
Result of the investigation :
The investigation reveals a conflict of interest prejudicial to the client. The detailed report of the main shareholders’ family environment of the target company allows to identify distant but active family links with the wife’s manager of the local subsidiary of this client.
Benefit for the client :
The client renounces the project, thus complying with its group compliance and ethics policy. The findings allow the client to launch an internal audit on the practices of the subsidiary and its manager, and then to dismiss the latter.
Thanks to this audit, he avoids any negative repercussions in terms of image and ultimately financial consequences in terms of possible sanctions.
Reading suggestion(s) on SKAN1 Outlook :
- Les due diligences d’intégrité dans les process M&A
- Fusions-acquisitions : les vérifications relatives à la lutte anticorruption selon l’AFA
- Investir dans une start-up : pourquoi les due diligences sont cruciales
- Corruption : en Floride un rachat qui tourne au fiasco