Commercial intelligence: corporate profiling: appointing legitimate trading representatives

Sophisticated research found that the businesses were shams, with operating addresses at residential blocks and derelict buildings. In every case, superficial due diligence had been carried out prior to the client entering into the relevant agreements. At the same time, it was necessary to understand how and why this practice could have developed within such a respected multinational.

Capcon Argen found that there were factors that enabled the situation to be repeated, time after time:

Multinationals entering into this country’s market were not always experienced, failing to understand the culture, critical success factors, and regional pace of transactions.
Capcon Argen’s client had also reckoned without the highly political nature of the market, where opportunities for nepotism and corruption were rife: the going rate was more likely to be favours than money.
Despite the high commissions, initial profitability in this region was more interesting than in adjacent countries because of the lower costs of acquiring a client.

As a result of its findings, Capcon Argen was instructed to validate the credentials of existing and potential agents from around the world. This had the benefit that while some proved to be unsuitable, due to lack of transparency and trading history, the majority were legitimate, reputable businesses, enabling Capcon Argen's client to redirect its energies quickly with full knowledge into profitable and sustainable markets with suitable partners and agents.

Case studies index


Case studies A multinational telecom provider suspected that one of its European managers was generating false commissions through non–existent agents. Capcon Argen was asked to ascertain whether the so–called agents were active, legitimate business enterprises.