Why validate my partner solvency?

Due Diligence Recrutement

Partners or customers’ solvency

The creditworthiness of a partner or a customer must always be the first thing to check before finalizing a partnership. However it should not be limited to the study of past and present balance sheets, it is necessary to be able to project into the future in order to better anticipate any changes.

The past:

  • Financial accounts
  • Payment history
  • History of disputes
  • Past investment performance

The present:

  • Reputation, references
  • Economic activity
  • Compliance with standards
  • Quality of a product, service

The future:

  • Team’s capability for projection
  • Validation of a business plan
  • Legal commitments and contracts
  • Business and operational synergies
  • Ability to turn R & D into Innovation

It is necessary to interview databases, regardless of the country in which is a partner. it means it is sometimes necessary to source locally when business registers, and court registries are not available online. ABI has an excellent network of sources on the ground in countries where the information can sometimes be difficult to access.