Problem
A private equity fund was keen to acquire a 50% stake in a fast-growing food company owned by a Turkish entrepreneur. The fund was concerned that the entrepreneur had no track record in equity partnerships and had no significant credit lines with banks who could provide references.

Scope
IRM was instructed to conduct a full due diligence study of the businessman, with reference to both the public record and through informal references and general gossip in his sector.

Solution
IRM was able to provide a thorough account of the businessman’s history and commercial ethics, as seen by a variety of different peers and colleagues intimately familiar with him. Although certain early indiscretions came to light, the businessman was found to be considered trustworthy by his peers and colleagues.

Result
The equity fund proceeded with the acquisition and later exited the investment on schedule without encountering any serious dispute with the local partner.