The importance of Due Diligence before you sign a contract

A shipping company was considering bidding for a contract with a well-known Indian raw materials trader, but needed to assess the risk before signing a contract.

How we solved it:

LSR was appointed to carry out Due Diligence that revealed that the Indian counterparty was part of a large group with associated companies in China, Singapore and in Europe. However, the target company was under-resourced and financially ring-fenced from the wider group, with no obligation on any party to provide financial support.

Why LSR:

LSR’s expertise in Due Diligence and quick turnarounds enabled our client to withdraw the bid. This proved to be a good decision since the Indian counterpart defaulted several months later.

 

Due Diligence, Pre-fixture, Company Structure Unveiling, Loss Prevention