The Challenge
An investment institution assessing a China acquisition target through a SPAC structure received reassuring initial signals. The controlling owner had strong credentials, operations appeared orderly during a site visit, and company-supplied customer and business metrics looked healthy. Independent evidence was needed to test that picture.
Our Approach
We conducted independent enquiries across the target’s customers and commercial ecosystem. Cross-checking company claims against customer experiences surfaced contracts signed before customer projects were approved, resulting disputes, and discrepancies between where revenue originated and where it was attributed. We also identified concerns about the target’s involvement in arranging investor–customer communications.
The Outcome
The findings helped the investor halt the acquisition before committing to costly formal due diligence and substantive negotiations. Independent customer and channel evidence gave the client a basis for reassessing risks that had not emerged from the company’s own materials or the initial site visit.
Scope: The engagement identified commercial risks and evidence for specialist review; it did not provide a forensic audit opinion.