Being is business for yourself is a risky proposition. There are so many unknowns being juggled that you never know when a great idea starts to go south. That means when you make a business decision, you have to consider both the benefits and risks of your decision. In some cases, the best way to be sure is to conduct due diligence investigations.
Due diligence for potential international partnerships
Nowhere can this be more important than in the course of creating an international partnership. The due diligence process in this case not only looks at the principles of the potential partner company, but also the relationships with government officials and offices and the culture of the area in the world the potential partnering company is located.
When providing due diligence investigation, looks at both the personal and professional lives of potential partners. And the culture and norms of the region they do business from comes into play. Depending on where in the world the business is located, the standard operating procedures could vary widely from the accepted conduct in the United States. These differences could create a rupture in the relationship simply based on how business is conducted on a daily basis.
Not only could that be unnerving for each side, but in the United States, the risks and liability could erupt into a situation where you could lose your business, your livelihood and potentially face fines and possible jail time.
Due diligence balances the benefits with the risks
Issues created by a clash of cultures may not be listed on an HR due diligence checklist or even on a general due diligence checklist, but are critical components to consider.
The benefits may have you starry-eyed and eager to quickly close the deal, but you have to ask yourself, is it worth the risk? And then collect the data by hiring to perform due diligence so you can go into the partnership with your eyes wide open – or walk away. Your decision, but our purpose is to give you the objective information you need to make the best decision for your business that you can.
-Brenda McGinley, CEO, All in Investigations, All in Investigations