To establish their credibility during a legal transaction, due diligence is the comprehensive analysis of either a person or a business. Due diligence is used to analyze the character, integrity and reputation of an individual or a business in a private investigation. Fraud, harassment, regulatory concerns and past criminal trouble are a few examples of the different types of information that is often uncovered. Today, we at Advanced Private Investigator & Security of Miami, FL would like to elaborate on the basics of due diligence.
Due Diligence Checklist
Due diligence can uncover the following background of individuals:
1) Including affiliations and board memberships of work history.
2) History of civil litigation and criminal case history including the details.
3) Driving history
4) With consent, credit history
5) Any listings on sex offender registries
Due Diligence on a Private Company & More
When it comes to corporate due diligence, it differs slightly. Prior to a business entering into a merger or acquisition with another organization is when they are often performed. From small to medium sized businesses, large corporations, private equity firms, or other types of establishments, these cases can be requested by the entire spectrum of companies. Company due diligence includes the following list below.
1) Political contributions
2) Government compliance checks and licenses
3) Financial history such as bankruptcies, assets, liens, and tax court cases
4) Corporate affiliations
When entering into a merger or acquisition, learning these details can be important for a business or investor to make an informed decision. Though it may be too late to back out, due diligence would help mitigate risk; an investigation would unearth any surprises prior to reaching a formal agreement or entering into a contract.
Financial & Other Due Diligence Reports
To find out how a company functions, an investigator will often use forensic accounting investigations, background checks, surveillance, financial investigations, mystery shopping, asset searches, and other corporate investigation methods. To uncover the legitimacy and potential of a company, investigators will need to review public records, speak with company clients and customers, and contact overseas offices in some cases. Working with a good private investigator can help determine the methods more fitting to your particular investigation needs
Information an investigator often gathers:
– Production and reconciliation audits
– Materials management (inventory)
– Marketing audits
– Liabilities and equity
– Intellectual property, assets and facilities
– Information systems audits
– Financial costs/results (revenue, cost structure, selling activities)
– Employees (benefits, personalities, unions)
– Compatibility audits
– Company overview
Types of Due Diligence
Though many can do their own investigation with due diligence, it will no where be as effective as with a professional. They obtain evidence legally and have access to resources that aren’t available to the public, a professional has the expertise to get the information and how to get it. Below are common types of due diligence.
Commercial: The current market brings into consideration commercial due diligence. Any business plans in place, conversations with customers, and competitor assessment are all including.
Legal: Dealing with the intellectual property of the company in question, this involves the contract, employment, loans, property, and pending litigation.
Financial: A company’s finances is verified in financial due diligence. The assets, liabilities, earnings, cash flow, debt, and management are all considered.
Other: Due diligence external types includes pensions, human resources, taxation, and IT systems.
Private Investigations, Security & More in Greater Miami, Sunny Isles, Fort Lauderdale, Boca Raton, Weston, Plantation City & Miami Gardens Florida
When you need due diligence, contact Advanced Private Investigator & Security of Miami, FL and let our certified experts do the rest.