Pre-investment and M&A Due Diligence

Engagement
An activist investor with a minority stake in a US technology company asked Gryphon to investigate the chairman of the board, who the client felt was not fit to lead the company.  Our client commissioned us to find evidence and commentary to show that the chairman had similar leadership issues at previous companies.

Investigation
A deep dive of the public record revealed that the chairman had been discharged or forced out of a number of companies he led before. Further investigation revealed that the subject had engaged in questionable business practices, such as overstating revenues, which led to a steep decline in the stock price of another company he ran and led to a number of civil litigation cases. During the investigation, we spoke to sources who corroborated adverse information identified in the public record. The sources offered further evidence of the chairman’s questionable management practices, including retaliation.

Result
Armed with this intelligence, our client led a successful proxy fight, which ended with the client pushing the chairman out and installing an ally to lead the company.

Engagement
A lower middle market private equity (PE) firm was considering an investment in a Swiss-based smart technology company. The firm hired Gryphon to conduct a deep-dive due diligence investigation to assess the opportunity and any potential risks including intelligence surrounding the technology company’s founder.    

Investigation 
Gryphon’s team conducted a comprehensive investigation, and our due diligence raised concerns about the company’s founder. The founder was referenced numerous times in a civil legal complaint, alleging conspiracy to misappropriate assets and opportunities. Through detailed research, we identified that the founder had indirect, yet significant, ties to the allegations. Our team of experts traced the founder’s professional history across multiple jurisdictions, scrutinized court documents, public records, and corporate filings, while also leveraging confidential sources and local intelligence. 

Result 
Gryphon’s research uncovered critical details about the founder’s potential legal exposure that may have otherwise gone unnoticed. As a result, the PE firm was able to restructure the investment deal, incorporating stronger protective measures and revised terms to mitigate risk.