Due Diligence In The BVI - Simple But Effective

In the aftermath of the financial crisis of 2008, there has been greater emphasis placed on effective due diligence on investments and acquisition targets. Important lessons should have been learnt from the many high profile hedge fund frauds and failures occurring at the height of the fallout. Many investors could have avoided substantial losses if relatively straightforward due diligence had been carried out prior to investing. Best practice dictates that detailed due diligence must occur prior to and on an ongoing basis following an investment.

Due diligence is a relatively simple and cost effective exercise to undertake early in a transaction and can serve to highlight at a preliminary stage potential issues that could prove costly if not discovered until later. While it is common to engage offshore counsel toward the end of a transaction to provide the customary legal opinion, involving offshore counsel at an early stage often makes for a more cost effective and