This blog is the last part in our 2 part series on due diligence. You can view part 1 here. Continuing with those elements we need to ascertain character and integrity and to fully develop any risk analysis. For individuals you can determine risk factors, character and integrity by performing the following checks.
– Including the corporate (i.e. any business organization) and personal criminal and civil liabilities and conviction, enumerated in part 1 in our series.
– Driving History can indicate a degree or personal responsibility exhibited by the individual.
– A check of the local sex offender registry can also be informative.
– A credit history (consent is required) can indicate a sense of integrity, responsibility and prudence in financial matters.
– A work history including any affiliations. At some point educational backgrounds will be important.

Need for Due Diligence when Entering Business Relationship

For corporate or any other business entity the following will be instrumental in determining any potential acquisition, partnership or investment.
– Tangible assets are property, plants or equipment used to promote company production and produce a profit. This includes current assets like inventory and consumable items. Fixed assets are those that constitute long term items and include machinery, vehicles and real property or buildings. Tangible assets can be damaged, stolen, repaired and purchased. It is incumbent on the business to ensure that these resources are kept in repair and maintained and guarded to preserve their usefulness. The important part of tangible resources is that they can also be used to secure loans to promote business opportunities. Tangible assets also include cash.
– Financial assets include not only cash in the bank and on hand but Certificates of Deposit (CD’s), bonds, stocks, loans and receivables as well as derivatives. Derivatives are financial assets whose value are derived from other underlying assets, like contracts.
– All the above are considered liquid assets as they can be converted into their respective values. As for stocks they are an investment participating in the ownership of the company and sharing profits as well as the losses. Stocks belong to the shareholder unless sold and have no maturity date. Bonds are a debt instrument sold by companies or governments in order to raise funds for short-term projects. Bonds are a legal document that states that the investor has lent money to borrower and the amount is to be paid back on or before the maturity date and earn interest.
– Licensing and regulatory compliance includes business licensing and compliance or being in accordance with established specifications and or guidelines. Most of these are government taxation, investment, insurance, labor and safety organizations. Compliance is a prevailing concern for business as the ever-increasing number of regulations require companies to be vigilant about maintaining a full understanding of the regulatory compliance in respect to their specific industry.
– There are regulations that set rules for the maintenance, storage and retention of business records in business computer systems. Not just the bookkeeping requirements but how customer, investors and other financial records are store on the business computers.
– Advertising must comply with commercial emails as advertising to include legitimate return email addresses and to provide an opt out option and to process these requests within 10 business days. Numerous other regulations bedevil business owners but were designed to protect customers, clients and investors. Before doing business with an individual or business you need to know that they are compliant with licensing, tax and regulatory practices.

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Due diligence covers some broad issues but if investigated properly they can provide protection and substantial quality information to make informed business decisions. If all goes wrong and you are involved in a civil suit you can prove that you made a substantial effort to comply with all legal due diligence standards. Advanced Private Investigators & Security of Miami, FL can conduct a due diligence or other private investigation for you. Call us to get started today!