Long-standing members of The Corporate Finance Network, Cumbria-based Lamont Pridmore, has shown the worth of due diligence in one of their recent projects.
The help of Chris Lamont was enlisted by the client, who was looking to purchase a sweet manufacturing company based in Spain. Chris entered into negotiations on the client's behalf and a deal was agreed in principle for the acquisition. However, once due diligence began, an anomaly in the previous year's profit figures was identified.
On the basis of this, the actual profit figure was significantly less than had been implied, leading to the client choosing to pull out of the deal, and look elsewhere for a new venture.