Проверка бизнес-партнеров и полный аудит бизнеса

Business partners verification and full business audit

It is not uncommon for business partners to fail to fulfill their obligations under contracts they have entered into. The reasons for this can vary — sometimes an entrepreneur simply overestimates their capabilities and resources, and sometimes such behavior is a deliberate deception of the counterparty.

How to check a business partner?

Criminal and commercial law often qualify such actions as fraud. For this purpose, offenders have a multitude of schemes, including the creation of shell companies. And in such a case, it will be very difficult to force the company to fulfill the agreements or compensate for the damage, even if the court case is won, and the matter is handed over to bailiffs. Moreover, an unreliable partner damages not only the business but also the company’s reputation. Therefore, the logic of entrepreneurs who seek to identify unreliable counterparts at the stage of discussion and negotiations, before the agreements are put in writing, is understandable — this allows minimizing risks and is much cheaper than potential problems in the future.

This type of legal service, such as checking business partners, is currently gaining increasing popularity. The check has proven to be an effective tool for ensuring the financial security of the company. The client receives all the necessary information about who their new business partner really is, and if the results are unfavorable, they have the opportunity to reject cooperation with a dangerous and unscrupulous counterparty.

Issues of commercial law in Israel

Commercial law does not assume any standard list or set of parameters that need to be checked to ensure the reliability of a partner. Except that in the USA there is the so-called ‘Rule of Five Cs’, when the parameters for checking a partner are denoted by words starting with the letter ‘C’, namely:

  • Character of the partner, that is, their business reputation, responsibility, attitude to their obligations, position in the business world;
  • Capacity, in other words — the authenticity of the partner, their charter documents, the history of the company’s legal status, the operations it carries out, samples of the products it produces;
  • Property and capital, as well as the capital structure and the ratio of liabilities to assets, that is, does your business partner have their own capital and are they ready (or can they) use it to some extent if they need to fulfill their obligations;
  • Collateral — this is the partner’s ownership rights to assets and their service life, as well as the likelihood of their moral obsolescence, the partner’s obligations for loans and leasing, mortgages, possible or existing lawsuits, etc.;
  • Conditions, that is, the current state of the economy sector with which the new business partner is associated, their position in this sector, the competitiveness of their products, the impact of inflation, etc.
  • Bonus* Some experts add another factor to this list — control, when the compliance of the transaction and accompanying documents with legal norms is checked.

In practice, the check of business partners is most often of interest to entrepreneurs in terms of finding out the real economic situation of a future partner, the history of the company, its influence on the market. It often happens that they ask to check not the company, but a specific person managing that company. It is no secret that sometimes the personality and personal qualities of the owner of the company can influence the conclusion or non-conclusion of a contract.

The only question remains — where to legally obtain all the necessary information?

Checking business partners

In America, for example, there are special databases for this purpose. One of the largest and most well-known is the Dun & Bradstreet system, which provides the necessary information to interested parties in the USA, the United Arab Emirates, Scandinavia, and Spain. It should be noted that information about commercial organizations also includes a database of bankruptcies, journalistic investigations, audit documentation, and other documents related to specific companies.

That is, along with general information concerning issues such as the place and date of registration, the list of owners, management structure, some facts about the financial condition, including real economic indicators, or, say, facts related to individual events — mergers, acquisitions, or illegal activities, there is also information about shares and court fines, copies of court decisions, and other important documents about the company’s activities. In Israel, such a system is not yet sufficiently developed, although there is no doubt about the need for its creation.

Who needs a business partner check?

Those who:

  • Have planned a transaction for a large sum;
  • Are preparing for a transaction related to starting a joint business;
  • Plan to delegate some of their powers to a partner;
  • Are about to hire a new person for a key position and so on.

Sometimes there is an urgent need to check a counterparty when the owner needs an independent and confidential examination, a kind of financial investigation, in case they have suspicions of abuse of trust and powers by their top managers.

Checking business partners is also very relevant if one of the parties to the transaction is a company or a businessman non-resident of Israel. In this case, the difficulty is that it can be hard for the company’s in-house lawyer to correctly assess all the factors about a company located in an unfamiliar country.

We offer you not to take risks, but to turn to experienced specialists for a business report. We will conduct a full Due Diligence, find out all the details about the financial situation, about the business and personal reputation enjoyed by your potential business partner, check the authenticity of the documents provided by them, the financial stability of the company, learn about its main activities and affiliated structures.

At the same time, all the information provided will be obtained from the widest possible range of sources, which will allow you to assess the possible risks and make a considered decision. In conducting such a check, we form a project group consisting of qualified auditors, lawyers, and tax consultants who will conduct a comprehensive check of the legality and commercial feasibility of the project. As a result, you will receive recommendations from specialists on the nuances of possible cooperation with the counterparty or advice on adjusting the agreement, changing its price, or other possible options in this particular situation.

Need a lawyer’s help? The lawyers of Alex Zernopolsky’s office are ready to provide you with qualified and prompt assistance. Leave a request on our website, and we will contact you!

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Олег Барбаков

Oleg Barbakov

I want to thank the team of professionals of Alex Zernopolsky! They helped my son in obtaining Israeli citizenship! The work was done in a timely manner, all obstacles were overcome, and the results were excellent! The staff themselves are responsive, kind people, always ready to help with any request! It’s a pleasure to work with them! Thank you to Alex for the help and to his entire team: Anna, Valeria, and Yana! I wish them health, and I’m confident that they will continue to help people for a long time!

Мири и Сергей

Miri and Sergey

We are a couple who came to lawyer Alex Zernopolsky after numerous rejections from the Ministry of Interior, during the process of obtaining citizenship for my husband. We had faced a very unpleasant experience and were literally shaken by repeated encounters with officials who were insensitive to people’s feelings, and their comments were inappropriate, to put it mildly. After turning to the Ministry of Interior, Alex and lawyer Anna from his office, who were always ready to listen to us and always there for us, my husband finally received citizenship a week ago. This happened thanks to the professional and humane approach of Alex Zernopolsky’s law firm. We are very happy that fate brought us together and we can recommend this office to everyone who wants to feel at home, and the lawyers will take care of your interests. This is the best that exists in today’s market in Israel. Alex delivers on what he promises, one hundred percent.

Victor Vakhshtayn

Victor Vakhshtayn

A lawyer in Israel is not a luxury, but a guide through the bureaucratic hell that is the state apparatus. However, it’s hard to call it an apparatus because none of the circles of hell exchange information with any other, ordinary demons have far more authority than their superiors, and sinners can appeal to the law – earthly or heavenly – as much as they like, but in every district office of hell, there is an ‘internal instruction’ that contradicts each law. (And then another one that contradicts the previous one.) In the end, laws come and go with each government, but the demons stay at their cauldrons for generations. Perhaps this system was invented by the founding fathers themselves to prevent the usurpation of power in the future. Try to build totalitarianism in a country where every street-level bureaucrat is, at heart, an anarcho-syndicalist. Therefore, going to court in Israel is not a challenge to the state, but a normal way to start a dialogue with it. It’s all like at the market: if you don’t bargain, you don’t respect. If you don’t sue, it means you don’t acknowledge. So an Israeli lawyer is always a bit more than just a lawyer. He combines the skills of Virgil, a stalker, a dramatic actor, a social worker, an ethnographer, and a psychotherapist. At least, a good lawyer does. I was incredibly lucky with my lawyer. With Alex Zernopolsky, we not only won the case. I found thirty new research topics – so fascinating was the structure of the Israeli bureaucracy ‘from the inside’. Now we will write in co-authorship.

Maxim Katz

I personally use the services of this law firm, and when someone from our team needs some help, we turn to Zernopolsky. So I am happy to recommend him.
The office of Alex deals with any issues in the field of immigration law in Israel: repatriation, legalization of family members, proof of paternity and kinship through DNA, and any complex cases.

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I express my immense gratitude to the team at Alex Zernopolsky Law Office and personally to Alexander for helping me with my issues in Israel. Everything was done within the agreed time frame and at a high professional level. In every matter, I felt careful guidance, foresight, and human participation. I am very satisfied with the cooperation. I recommend!

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We turned to the office of lawyer Zernopolsky with a rather complex case. And, to be honest, we were quite skeptical about lawyers based on unsuccessful experiences of cooperation with lawyers in the past. But Alex dispelled all our doubts from the first meeting and showed how real professionals work. Throughout our cooperation, we did not worry about anything, Alex was always in touch and clearly answered all our questions. I highly recommend the law office of Alex Zernopolsky. Without exaggeration, he is the most professional lawyer you can trust! I express my great gratitude to the law office of Zernopolsky, and in particular to you, Alex.

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