Due Diligence (background checks) is a robust business appraisal on a person of interest, investment or a business. Rarely should a project ever consist of standard tick box exercise as every project is never the same. Each client wants different insight, but ultimately Due Diligence take is to take assumption and rumours and turn them into facts. Above all, facts that you can make decisions and then take action. Due Diligence is usually requested by prospective buyer, investor, employer to assess:
- Track records
- Potential conflicts of interest
- Fact checks
- Political links
- Criminal records
Investors use this service and our more advanced offers of Investment Intelligence and Forensic Intelligence to understand the character of any deal, as well as the associated risks and determine if a deal fits within their portfolio. The validity of a business and investment plan claims for investors includes subjects like:
- Market size validity
- New product confirmation
- Assets and liabilities,
- intellectual property and patents
- Operating standards
- Litigation history
- Customer verification
- The legitimacy of sales projections
- Check of current and past financials
- key player backgrounds including track records, competencies, conflicts of interest and any political or criminal links and records
Due Diligence allows decision-makers to isolate relationships which will represent the best interests of the business. As well as the shareholders, customers and employees. And it’s essential when conducted an acquisition of a company. But without the Intelligence on the company, you are looking to buy it makes it hard to make informed decisions. Some buyers and investors conduct these activities before they even approach the company to buy. Then do the formal Due Diligence during the purchase.
How to perform Due Diligence / Background checks
Due Diligence is down to conducting Osint and accessing various government websites and other databases. However, to get the insight, you need to drag yourself away from the computer screen. Accordingly, making discrete inquiries by taking a look at the target company and the people they work for. So speak to relevant people to determine the target company or personal, professional reputation, social and business life and financial position. But getting boots on the ground will also confirm or question production capabilities and capabilities. Also, confirmation of the office location and counting the number of staff entering the building will also provide insight.
Why is Due Diligence essential?
- Complete and robust Intelligence on the target will allow you to make informed decisions
- An investor should always conduct impartial and independent Due Diligence before doing into a negotiation
- And excellent Due Diligence is a reasonable step to show you have tried your hardest not to breach KYC (Know Your Client), other criminal offense and anti-slavery regulations