On Best World International and the long road ahead

ON JULY 23, 2020, PwC issued its final audit report on Best World International (BWI). This was followed by a commentary in The Business Times on July 30, 2020, which concluded that BWI's founders should assist minority investors by offering to buy them out. This article challenged the credibility of BWI. Please allow me to provide an opposing shareholder-biased perspective of the same audit report and BWI's remaining challenges on the long road ahead.

For me, the audit served two primary purposes: First, to establish the legality of BWI's China business. Item 4 in the report, which states that the legal opinion obtained affirms that "the franchise model is in compliance with applicable franchise-related laws and regulations in China", clears this up.

Second, to allay concerns that there were financial shenanigans that hurt minority shareholders. As a retired analyst with significant experience in the emerging markets, I did not find anything in the audit report that set off alarm bells on this point.