Due Diligence Background Investigations
What Are Due Diligence Background Investigations?
Due Diligence Background Investigations on a buyer, seller or key executive can be a great form of business insurance and will give you the peace of mind before and during crucial business transactions.
These checks should be conducted prior to engaging with a client, before settling a dispute, during a merger or acquisition and while vetting vendors/suppliers/distributors/dealers.
- Does the buyer have anything in their background that could affect their ability to run the business successfully and to pay you in accordance with your agreement?
- Does the buyer have real estate holdings that could offer liquidity if the business gets in trouble and they need access to cash?
- Does the buyer have any regulatory sanctions or credit issues that could impact banking relationships or the buyer’s ability to do business in regulated industries?
A Due Diligence Background Investigation Often Includes, But Is Not Limited To The Following:
- Asset & Liability Search
- Regulatory Issues (SEC, FINRA, CPTC & NFA)
- Criminal Background
- Social Media
- UCC Filings
- Business Credit Profiles
- Employment Verifications
- Develop & Verify Identifiers (SSN, DOB, Address History, FEIN)
- Business Affiliations/Ownership (Subsidiaries)
- Litigation History (State & Federal)
- Professional Licenses
- Bad Press / Media Controversies
- Education Verifications
- Credit Report – Profile
You need to know as much information as possible before you sign. Our motto is “Trust But Verify”.
Business intelligence on the financial stability of a partner, supplier or distributor can help you avoid litigation.
Instability can impact your ability to meet produce, distribute and meet the deadlines of your customers.