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Reputational risk report

An investment company with its venue in the United Kingdom began a process of acquisition of a very significant percentage of a Spanish technological and development company. While the financial and legal due diligence were elaborated, Winterman was required to make a reputational risk report about the main shareholders and executives of the entity. It was known that the main executive of the company had been involved in a matter of corruption which was not brought to court as the parties came to an agreement and the matter was closed discretely.

This fact greatly worried investors, who requested going deeper into the professional and personal profile of the mentioned executive, and it was proved that he had been involved in different corruption incidents in which also the administration appeared; because of this, the different attempts were always discretely closed with extrajudicial agreements and the dismissal of the involved executives among which we had always that executive. We also became aware through non official sources, that the subject of our investigation, also had an opened investigation process by police authorities.

In view of the result of our report and following our recommendations, it withdrew the acquisition offer. Several months later, the investigated subject was accused for several cases of corruption and his company, as well as other satellite businesses, declared itself on a creditors meeting.