Due Diligence Research
Much can be written about Due Diligence. How it is defined and used differ widely based on size and nature of the business. For our purposes we will simply define it as a process of risk assessment. In laymans terms we are simply doing a very thorough background investigation of all aspects of a company or individual representing a company. This can include corporate documents, pending litigation, securities investigation, labor agreements, taxes, insurance, employees and of course financial information.
Basically we want to make sure everything being put forward for the deal is accurate and completely truthful. Most often these investigations revolve around assets and financial data but we feel it is important to run background checks on the key individuals involved. Any weak spots located in the investigation can be used to negotiate better terms or prevent you or your company from exaggerated claims or fraud.
These investigations are time consuming and costly. Be prepared to commit
at least 30 days to the process.
