Enhanced Due Diligence for Cross-Border Defence Sector Acquisition

About

Background

The client, a global defense-sector company with operations across several continents, was evaluating a
potential acquisition of a leading national defense manufacturer in Eastern European country.

Given the sector ’s sensitivity and the increasingly complex geopolitical environment, the client mandated NSSG,
at an early stage, to conduct an enhanced due diligence investigation, extending well beyond in-house
standard financial and legal checks. The objective was to identif y hidden political, sanctions, reputational,
counterintelligence, and compliance risks that could materially affect valuation, regulator y approval, or post-
acquisition integration.

Solutions

NSSG deployed a multidisciplinar y team combining desk-based intelligence, sanctions and regulator y analysis,
and human-source intelligence activated within the country and the specific region of operations. The
investigation uncovered historical corporate structure linking to sanctioned entities, governance, political
exposure, partnerships via red flagged proxies, and a pattern of security incidents on- site. While some
collaborations supported expansion into Western markets, they also introduced sanctions adjacency, regulator y
exposure, and reputational risk, particularly under US and allied compliance regimes. Identified specifics raised
concerns regarding end-user controls, diversion risks, and post-deliver y monitoring effectiveness.

Impact

NSSG enabled the client to make an informed, risk-aware strategic decision by uncovering material non-
obvious risks that had not been identified through conventional due diligence. The engagement demonstrated
NSSG’s ability to operate at the intersection of defense, geopolitics, sanctions, and intelligence, delivering
actionable insights that directly support high-stakes M&A decisions in complex and volatile environments.