UK Company Due Diligence

The London Borough of Brent (LBB) is substantially increasing its capital investment programme and this could include entering into partnering arrangements with private sector companies and third party joint ventures.

To reduce our exposure to financial and other risks, we will look to undertake a thorough Due Diligence exercise of each party and/or joint venture member that LBB seeks to partner with in delivering Council objectives. This will provide senior officers and Members with the necessary assurance that organisations suggested as potential partners have undergone a sufficient level of scrutiny so as to prevent a compromise Brent’s financial standing or reputation.

In the first instance, the Council wants to establish the facility to undertake Due Diligence examinations on, between 3 and 6 UK organisations, on a call-off basis (i.e. as and when needed). The outcome of each exercise will determine, among other things the subject’s financial strength and exposure to any existing or emerging risks identified by the successful bidder.

Brent Council now wishes to commission an organisation to both undertake this analysis on its behalf and prepare a structured report, for each organisation which is the subject of the exercise.

Reports should contain a summary of key business risks to which the organisation, and/or the Council through its association therewith, is exposed as well as a detailed backing report supporting the summary.

They should also include a grading of the risk exposure (e.g. ranging from ‘extremely low’ to ‘extremely high’ with intermediate stage points) and a guide to the grading that could be expected of a benchmark organisation operating in the same field.

It is expected that the report for each organisation scrutinised will be presented within two weeks of having been formally commissioned, and that the first instruction will be issued within a week of the contract award.