A survey performed by Deloitte & Touche called found that one third of respondents didn't perform proper and thorough enough due diligence when striking deals with foreign companies.

The findings are published in Deloitte & Touche's "Look Before You Leap: Global Investigative Due Diligence." While emerging markets are attractive to businesses, Deloitte found that dealmakers simply aren't detailed enough when investigating foreign companies' involvement in organized crime, terrorist-funding, money laundering, and more.

A representative with Deloitte & Touche suggested that more government regulation could be the answer, pointing to the domestic success of the Patriot Act.

Many companies aren’t performing due diligence when weighing the risk that mergers, acquisitions or investments pose to foreign investments.

Fully 33% of respondents’ organizations didn’t always conduct very detailed background checks before entering into agreements with companies based outside the United States, according to the survey “Look Before You Leap: Global Investigative Due Diligence” from Deloitte Financial Advisory Services LLP of Boston.

(Continue reading this story on InvestmentNews)

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