The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Nearly one third of deals collapse or are restructured after due diligence, according to survey

Nearly one third of worldwide corporate deals collapse or are drastically altered after background checks on potential new business partners uncover problems, according to research conducted by the Risk Advisory group, an investigations and security consultancy.  The problems include companies and individuals having broken anti-corruption laws and, in the most extreme cases, having links with terrorism and other illegal activity.

Henry Pugh, head of business intelligence at The Risk Advisory Group, said: "Our research shows that there are real pitfalls for the unwary when it comes to doing deals, particularly in emerging markets but also in the UK. Companies risk both their profits and their good name if they deal with people and organisations they do not investigate thoroughly.

"Fortunately, more and more companies are recognising this threat, saving themselves and their shareholders from significant financial loss, awkward questions from regulators and reputational damage."

The study covered nearly 300 deals during 2003 and 2004 and the organisations involved in the study include leading multinational corporations and private equity investors.

The study found that 25% of deals in the UK were terminated or significantly modified as a result of information uncovered during due diligence.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree