Business warned to beware risks in emerging markets

Irish companies have been warned not to ignore the potentially serious risks to their businesses when making acquisitions in emerging markets.

According to a study by Deloitte into pre-investment background checks (known as integrity due diligence) conducted by European foreign direct investors on acquisition targets in emerging markets, there has been an increase in the number of investors conducting such checks since 1999, but the depth of this diligence can vary dramatically, as can the response to the risks identified.