A private equity firm was considering an investment in a South Korean cosmetics company and its subsidiary, which were both also active in the People’s Republic of China (PRC). The client instructed Stroz Friedberg to look into the companies and their principals to help identify any reputational issues that would potentially affect the transaction.
Our examination encompassed detailed public records research in Korean and Chinese and revealed a number of relatively minor regulatory infractions that were principally historic and, thus, did not have a material impact on the company’s current operations.
Targeted source enquiries with cosmetic industry contacts in South Korea and the PRC confirmed that the company and its principals were not involved in any major issues of concern to the client.
Aided by Stroz Friedberg’s investigation, the client decided to proceed with the next stage in their transaction.