Due Diligence Crucial for US Companies Operating in Guatemala
The Importance of Due Diligence in Guatemala
In a market where independently verifiable information is scarce, performing due diligence in Guatemala can be a daunting task for even the most seasoned US companies. The lack of publicly-listed companies and minimal transparency regarding financials, sales, and officer information makes it challenging to verify the credibility of local businesses.
Mitigating Risk through Due Diligence
According to industry experts, the best way to mitigate this risk is by:
- Requesting bank and trade references from potential agents and customers
- Consulting with US banks for information on Guatemalan banking institutions, many of which have correspondent relationships with Florida-based banks
These steps can provide valuable insight into the credibility of local businesses and help US companies make informed decisions when partnering with Guatemalan counterparts or entering into new markets.
Resources Available to US Companies
The U.S. Commercial Service in Guatemala offers a valuable resource for companies looking to expand their operations in the country. The International Company Profile report provides in-depth information about local businesses, depending on source availability. This comprehensive tool can help US companies make informed decisions when partnering with Guatemalan counterparts or entering into new markets.
“We understand that operating in a foreign market can be complex and intimidating,” said [Name], a trade specialist at the U.S. Commercial Service. “That’s why we’re committed to providing our clients with the resources they need to succeed. Our International Company Profile report is just one of the many tools we offer to help US companies navigate the Guatemalan market.”
How to Access Due Diligence Resources
For more information on how to perform due diligence in Guatemala and access the International Company Profile report, please visit export.gov/guatemala/servicesforuscompanies/index.asp.