We’re often asked how we can handle global investigations if we’re based in New York. The answer is simple: we use trusted investigative partners throughout the world who assist us locally.
This answer sometimes leads to additional questions, such as, “Why would a client do business with an investigative firm that subcontracts work to others? Wouldn’t it be more efficient, cost-effective and offer more control to deal with the service provider directly?”
On the surface, these are great questions. This article explores a few of the reasons why many organizations choose a single partner, knowing that they will use other firms to complete the assignment.
Typical Request
Recently, we heard from a multinational firm based in New York that was in the final stages of completing an acquisition in the Philippines, China, Russia and Australia. As part of their standard due diligence process, they research the backgrounds of firm principals, as well as the legal entity. To do that, the firm has three options:
- Conduct the investigation themselves
- Hire multiple firms, one in each country, to conduct the investigation
- Use a firm like ours that would use known, vetted partners to conduct the investigation
Some companies choose option #1. Most would choose either #2 or #3. This client chose #3 for the following reasons.
Challenge: Finding and Maintaining Vendors
Finding and vetting investigative partners isn’t easy, especially for someone without an investigative background. Even more difficult is maintaining the relationship with these trusted vendors.
Trusting an unknown investigative firm can carry some risks. Private investigations is not always a regulated industry in every country. Even so, you still must ask yourself: “Where are they getting their information from? Are they breaking any laws?”
Benefit: Single/Limited Point of Contact(s)
By using one or a very small group of firms, the client only deals with a limited number of contacts. Anyone who has coordinated global investigations knows that it’s not easy. Simple issues like time zone differences result in conference calls in the middle of the night to accommodate business hours at the location where the investigation is being conducted. More complicated issues include managing multiple vendors and investigations, while trying to complete your own tasks. In the end, clients find it much easier to deal with us while we manage these issues.
Benefit: Reporting
At the end of an investigation, a third party may write the final report, but the report really reflects your service provider. Have you ever received a report from a local investigator whose primary language isn’t English? Or several reports? Wading through these documents, especially when working with multiple firms and formats, is a challenge. By partnering with a single, trusted firm that subcontracts the work, you won’t have to worry about any of these issues. A single firm will collate and analyze all of the information into a professional report in a familiar format.
Benefit: Fees
We often retain our subcontractors to perform investigations for multiple clients. As a result, we receive preferred pricing. How does this impact client fees? Basically, these discounts make our investigative fees comparable to working directly with the in-country firms. So now, our client gets all of the benefits mentioned above, while paying the same or slightly more. Win-win! If you decide to use a single firm or a limited number of firms for your global needs, however, it’s important to ask the right questions (e.g.,what is their vetting process, experience, understanding of local laws/culture, successes and failures) to ensure that your needs will be met. In the end, each client’s needs and preferences are different. Also, read more here to be sure that your investigative partner is asking you enough (and the correct) questions.
