Comprehensive due diligence on a construction company

Osborne Partners was engaged by a private equity firm to conduct due diligence on a construction technology business in India, focusing on growth prospects alongside potential reputational, compliance and operational risks. Using public records research and discreet source enquiries, we assessed the company’s market position and management’s ability to scale, and documented concerns raised by sources regarding financial practices and potential regulatory exposure. Our report presented a balanced view of the opportunity and the risks identified through our enquiries.

Expert:

Avanti Bhati

Back to case studies

Investigate

Osborne Partners was retained by a private equity firm to conduct focused due diligence on a target company operating in India's construction technology sector. Our scope encompassed assessment of the company's growth trajectory, operational capabilities, financial reputation, political exposure, and management's capacity to scale the business. The client required comprehensive intelligence to inform their investment decision and identify potential reputational or operational risks.

‍

Evaluate

Our engagement combined public records research with discreet source enquiries to assess the target company's business practices and reputation. While publicly available information provided limited insights, discreet sources familiar with the company's operations revealed material concerns regarding financial practices. Sources indicated that the company generated undisclosed cash flows through arrangements with business partners, vendors and clients, engaged in related-party transactions that lacked transparency and employed strategies to suppress reported profits and reduce tax liabilities. Additionally, sources alleged that the company made unofficial payments to government officials and provided gifts to clients to secure business continuity. While such practices are relatively common in India's construction sector, they nonetheless present potential reputational and compliance risks for institutional investors.

‍

Communicate

Osborne Partners provided the client with a balanced assessment highlighting both the investment opportunity and material risks. Our report noted that the company offered attractive fundamentals including high-quality products, a strong client base, and positioning in a niche yet growing segment with limited competition. However, we advised the client to remain vigilant regarding the identified financial practices and potential regulatory exposure.

‍

Service

Business Intelligence & Investigations

We support clients across the investment lifecycle, from pre-investment due diligence to post-investment investigations and public policy risk assessments, helping them identify and respond to reputational, regulatory and governance risks.

Find out more

Expert

Avanti Bhati

Partner

Avanti specialises in business intelligence, investigations and political risk, with a track record of uncovering assets worth millions in cross-jurisdictional cases.

Read full bio