They pose as potential clients—Michael as a shark-skin-clad businessman and Dwight as his associate—to gather information on their client list and pricing.
Despite a massive crisis of conscience, Michael eventually gives the stolen client list to David Wallace after being pressured by Dwight. This action directly leads to the family business going bankrupt eight weeks later, as revealed when Michael tries to call them for a job in a later episode. [S5E12] Prince Family Paper
At the request of David Wallace, Michael and Dwight go undercover to scout , a small, local competitor. [S5E12] Prince Family Paper