Political Due Diligence

Investment fund interested in acquiring a transportation company with assets in North America.

Political Due Diligence

Investment fund interested in acquiring a transportation company with assets in North America.

Risk / Opportunity

A major Canadian investment fund was interested in acquiring a transportation company with politically sensitive assets in Canada and the United States that were regulated by the federal, state/provincial, and local governments. The investment fund was concerned that the various governments could harm the transportation company’s ability to operate in its current form.

Foresight’s Approach

Foresight began by determining how the target was currently regulated by all three levels (or orders) of government in each country.

Second, we identified potential threats to the transaction by interviewing senior government officials and reviewing relevant open-source data.

Third, we analyzed the likelihood of the identified threats to the investment fund’s transaction and developed a structured risk assessment.

Outcome

As a result of Foresight’s political due diligence, the investment fund had much greater knowledge about the potential threats posed by government policy. This allowed them to close the transaction with greater confidence in their investment decision.

How We Help – Political Due Diligence