Due Diligence checklists often omit any verbal communication with employees, past employees, references, etc... and instead usually focus on what can be put on paper. Indeed, that which can be put on paper and analyzed statistically is of utmost importance. However, from an executive position it is also favorable to gain further insight into a company through verbal communication and cross referencing statistical findings with direct communication. Furthermore, most that have conducted due diligence internationally often find that attaining a full standard of North American due diligence requirements overseas can often be unattainable when forming international partnerships, mergers and acquisitions, etc... Simply stated, material findings should also be tested and verified.
Direct native language communication also greatly enhances the efficacy of verbal and written communication with international partners, competitors, and other parties. Clients of the Hemington Group have confirmed that the results of communication are greatly enhanced when the international party is allowed the comfort of speaking their native tongue. Even though some communications may go through an initial growing phase due to the international party's surprise and realization that their internal communication may no longer be hidden, the deep cultural respect implied eventually captures the international party's attention to great effect.
In our experience even the simplest native language phone calls to clarify an issue can change the entire course of an international project. Thus, The Hemington Group recommends that all of its clients and other businesses with an international scope actively and consistently pursue their blindside during any international project.
Directly communicating a clients interests to the decision maker of the internationally partnered company is of utmost importance, especially when working cross culturally in a multi lingual environment. Here at The Hemington Group we draw our experience from our foundational involvement with doing business in China. Typically, companies operating in the Peoples Republic of China (PRC) have a bottleneck structure, whereby key decisions that deal with foreign partnership are almost always solely made by the Director of the company. The Director of a Chinese company functions similarly to a President, or a CEO of a North American company. Many foreign companies follow this same trend. Thus, we uncover the core principal that, if you are not communicating directly with the Director, President, CEO or equivalent executive decision maker of an internationally partnered company, then you are either a small scale operation or your objectives are not being achieved.
Adam Kryder has extensive experience operating business in foreign markets. He specializes in bridging cultural and communication gaps to help businesses more effectively and efficiently conduct business in international markets.