How to Choose the Right Business Partner
Choosing the right business partner can produce enduring success and deliver profits for your firm. Partner with the wrong business and the financial and reputational costs could be immense.
Doing the proper due diligence and background checks has always been important, but since the COVID-19 pandemic began in 2020, unscrupulous operators have sprung up to exploit corporates who are scrambling to patch up their supply chain.
Now more than ever, a comprehensive and thorough company background check into your potential business partners is essential – cutting corners and skipping this process invites disaster. Many companies have seen their top and bottom lines pressured in this challenging economic environment; no business can afford to suffer losses by working with a partner committing fraud against them or going under financially. Knowing your customers is important; knowing your business partners is even more vital.
Before delving into the potential partner’s background, ask yourself what this company brings to the table that creates a winning combination – this includes its capabilities and resources. In other words, their expertise adds value to the shared goals being pursued. This brings us to the second key point: the ideal business partner ultimately has the same objectives and goals as your firm. If this criterion is not met, then nothing else matters since both parties are striving for different outcomes.
Here are the top reasons for performing thorough background checks in Hong Kong :
1. Reduce the risk of financial and reputational damage
Hong Kong is a world-class business and financial centre that attracts the globe’s premier firms. The lure of monetary gains unfortunately also means bad actors—ranging from the incapable to outright malicious—are eager to take advantage of the unprepared. Is your potential business partner financially sound? Do they have any past or pending criminal cases? Are they involved with organised crime or in breach of international sanctions? Robust civil and criminal due diligence will unearth these problems before they derail your partnership.
2. Prevent conflicts of interest
In Hong Kong and other Chinese cultures, personal connections and patronage networks form the basis for many business transactions. This increases the risk that a new business relationship is formed for personal gain and not in the company’s best interests.
3. Know the local conditions and business traditions
Every company has their its own established methods for doing business –corporate research helps prevent problems down the road and improves the basis for cooperation.
Quality Business Investigation
Conducting corporate research requires a team of professionals deeply experienced in business and well versed in the chicanery employed by bad actors. From establishing joint ventures to merger and acquisition targets, as certain your partner’s reliability and integrity by engaging Herald’s investigation team that possess the following capabilities:
1. Professional and Experienced
The entire team is trained in various aspects of corporate and individual background checks and financial due diligence.
2. Transparent and Ethical
Our staff are party to the most stringent standards as set out by our Code of Conduct; Herald is also proud of our ethical approach to business investigations – we gather all information via legal means and only use unfalsifiable evidence in our work.
3. Client First
From the initial query to wrapping up the investigation, we constantly communicate and update our clients through every step of our work. All our clients receive our customised reports and bespoke advice.
Everything moves quickly in Hong Kong, and couple that with the dynamic growth of Asian economies, speed is of the essence. Our staff work on rotation around the clock, ensuring our clients’ needs have priority all day.
Failure to conduct a complete background research on a business partner has severe consequences. By engaging our comprehensive investigation services, we will identify red flags and provide advice on whether you should continue dealing with a corporate entity, whether in Hong Kong or anywhere else in the world.
For more information on how Herald’s comprehensive service of background checks and corporate and personal due diligence can help protect your business, please visit our services page.