Investigation Hotline, Due Diligence

Don’t be Penny Wise & Pound Foolish – Examine your Risk and Exposure with a Proper Due Diligence Investigation.

June 16, 2015

Examine your Risk and Exposure with a Proper Due Diligence Investigation

Due Diligence Investigation

Due diligence is an investigation of a business or person, usually prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations.

In today’s world, the risks inherent with financial transactions are greater than ever. Due diligence can be invaluable and provide information that financial and legal analyses cannot i.e., background checks, financial stability, integrity issues, past indiscretions, verify any information provided is correct and discover any undisclosed problem or threats.

Corporate due diligence is extremely important prior to entering into a merger or acquisition with another organization. You may not be able to uncover certain issues that a skilled private investigator can i.e.; issues with licenses, government compliance checks, political contributions/influence, financial history, including bankruptcies, taxes and liens. With this information you will have the knowledge necessary to reduce losses, manage risk and make informed and intelligent decisions while avoiding such pitfalls as future law suits from bad partnerships.

The process of hiring new employees is also a good time to consider due diligence. The hiring process itself can be expensive and time-consuming, but making a bad hiring decision can be even more costly.

Most CEO’s agree that hiring new people is their number one concern therefore it is imperative to gather all of the available information to enable you to make the proper decision. A private investigator can discreetly gather information on a prospective employee such as; work history, cases of harassment, fraud, past criminal trouble, litigation history, driving history and credit history. Any one of these items can reveal a red flag prior to reaching a formal agreement or entering into a contract, at which time it may be too late to back out of.

So as you can see there are many cases in which the hiring of a skilled private investigator to perform a due diligence investigation can be beneficial. If you ever have the need to obtain information for whatever reason, the question you should ask yourself is not, whether you can afford to hire a private investigator but rather, whether you can afford not to?

The Three-Pronged Approach to Intelligence Gathering