Risk And Compliance - Staging - Avalon Global Research

Overview

Success of any transaction or investment decision depends largely on the quality of investigation conducted prior to the decision.
As one of the premier global market research firms, Avalon Global Research aims to help all its clients with tangible results that support business strategy and sustainable growth.AGR’s Risk and Compliance research, through detailed investigation of
the target company and its promoters helps provide the context and information necessary for making informed decisions.

Market research on Risk and compliance services

Solutions

Background Check

Validation of background information contributes to the success or failure of a transaction. Our in-depth background research focuses on gathering business information about the company and its promoters by checking all aspects of company’s operations to ensure its authenticity and correctness in reporting.

Reputation Check

AGR’s reputation checks and verification services offers our clients a quick snapshot of the authenticity of the various firms and individuals in the business ecosystem. We assess the Reputation, Capabilities, Behavior Patterns, Integrity, Strengths, Weakness of Individuals, Close Associates and Associations, Political Exposure, Past Records including Legal and Crime Records.

Operational Due Diligence

Be it for evaluating acquisition or partnership, it is important to unearth the realistic operational practices system and governance standards followed by the company. We analyze the company’s relationship with key people, supply chain and distribution partners, to judge the integrity of management and quality of product using discreet approach.

Investigative Checks

AGR offers investigative checks on specific aspects of the company, individual, or a process. We gather evidences by close monitoring of the target and check on documents to identify irregularities or non-conformance to set processes which are used as inputs to refine processes or as supporting evidences to initiate proceedings.

Infringement Research

AGR conducts detailed search on IP records to look for possible infringements to protect the right of copyright /patent holders and also guide new inventors to proceed for patent applications by conducting prior art searches. Patent analysis also help in identifying white space opportunities.

Regulatory Search

We also help domestic firms and overseas firms looking to export to another country by closely studying the Regulatory Structure, Requirements and Statutory Needs to ensure compliance and hassle free market entry.

Assignment Examples

Background Check

Conducted reputation check and operational due diligence on a South India based food processing company to facilitate stake acquisition by a Japanese food major

Background Check for Risk and compliance services

Operational Due Diligence

Initiated integrity check, operational capability and distribution due
diligence on a leading air conditioner manufacturer in India on behalf of its overseas partner

Operational Due Diligence for Risk and compliance services

Process Compliance Check

Conducted discreet check on process compliance and violation by
employees to evaluate system efficacy for a leading home mortgage financier

Process Compliance Check in Risk and compliance services

Regulatory Research

Studied regulatory process, market risks and suggested mitigation
measures to support market entry decision of a global medical device maker

Regulatory Research in Risk and compliance services

Patent Analysis

AGR identified potential product development opportunities for a global chemical major by analysing patent activities, competitors’ footprints and end use market trends

Patent Analysis for Risk and compliance services

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Knowledge Center

CASE STUDIES:

Background check to trace the financial transactions and worth of a realtor

CHALLENGE

The client wanted to conduct a background check on the promoters of a reputed real estate major in Mumbai
Client wanted to understand the operations and networth of the promoters
TCorporate structure and governance was not transparent and cross holdings in subsidiaries and their role made the task complex

APPROACH & METHODOLOGY

The promoters had a clean image save for a few claims of fraud against the company. The company was charged only in one of these cases, while the others were just allegations
AGR scanned through all the regulatory filings of these companies to understand the role of subsidiaries, its holding structure, source of funding, ultimate beneficiaries and nature of transactions
Clear relationship tree and directorships and holdings were clearly mapped by tracing intra group transactions

VALUE DELIVERED

AGR advised the client on the modus operandi of subjects’ businesses and questionable role of subsidiaries in intra group financial transactions
The accounting practice and valuation methods were not in line with the accounting standards or ethical practices
Client was able to take informed decision based on the corporate governance practices unearthed by our research

Discreet check to test the process compliance and system strength

CHALLENGE

A leading home mortgage financier was making strong growth in loan advances to home buyers
Surprised by strong growth, the client was keen to test the system efficacy and process compliance among employees to ensure growth is not at the cost of compliance
The check has to be done discreetly using real cases

APPROACH & METHODOLOGY

AGR studied the process and shortlisted various branches to conduct the discreet check
AGR arranged for dummy customers meeting the broad selection criteria, paid the required fees and requested them to go through the process of loan application and negotiation
AGR observed the customer loan process journey and how the employees handled certain disqualification criteria

VALUE DELIVERED

AGR gave feedback about outliers and violations at various stages of loan processing using actual experience
Our recommendations and inputs helped the client tighten their process and standard operating procedures
Risk identification and mitigation measures were put in place to ensure the business growth is not at the cost of high risk

Case study on Helping the buyer unmask the real decision maker in the target firm

Helped the buyer unmask the real decision maker in the target firm

CHALLENGE

A Japanese food major was keen to pick up stake in a leading ready to eat processed food brand in India
The brand was popular but off late has lost some of its sheen and edge in the market
There were no negative news about the firm in the public but buyer was keen to understand the real reason for the decline in a discreet manner

APPROACH & METHODOLOGY

AGR read through all public domain information to understand the business context and build the hypothesis
Interviewed all the stakeholders- retailers, distributors, customers, competitors and employees to understand the competitive strength and performance of the brand
Key insights from marketing people and distributors led us to employees in the corporate office
Employees in the corporate office revealed on the constant tussle between promoter family and professional management which led to operational and distribution weakness
Brand was unable to capitalise on its strength and was languishing due to lack of presence in certain market

VALUE DELIVERED

The client was able to take informed decision prior to investment as to who is the decision maker and who is causing trouble
TThe client also got clear view of how to revive the brand’s fortunes