What is a Due Diligence Investigation?
Updated: Dec 11, 2021
A due diligence investigation is performed when a person or an organization wants to mitigate risk by obtaining research on the topic prior to a partnership or making a major business decision. The goal of such investigations is to manage reputation, avoid risk or legal issues in decision-making, hiring or business operations. Due diligence is used by a variety of clients when partnering with another business or hiring a high-level executive.
A private individual may want to perform due diligence or a background investigation on a future business partner. Another example is when a business examines records, newsworthy sources and financials prior to signing a contract with the subject of the due diligence investigation. There are many examples of due diligence investigations. One thing they all share in common is the goal of risk mitigation and reducing liability for the client.
What is the Due Diligence process?
The investigation begins with engaging the client in regards to their goals or objective of the due diligence investigation. What are the risks at stake? What is their budget?
Next, the private investigator conducts the due diligence by accessing multiple risk databases and newsworthy resources to be cross-referenced and verified. The licensed investigator will work to verify any derogatory information located regarding the topic. Some examples of resources that may be checked are:
· State Revenue records
· Voter Records
· Proprietary risk databases
· Sex Offender Registries
· News and Library Resources
· Social Media reports
· Political donation records
· Professional licensing
· Bankruptcies or collections
· Assets or liabilities
· Company history
Once all the information is located regarding the topic of due diligence, an organized report of investigation is analyzed and issued to the client for review. Areas of concern regarding the topic will be highlighted within the report.
The report provides the client with relevant reputational information to make ethical business decisions and mitigate risk or potential legal issues. Choose a licensed private investigator such as Blue Eagle Security Solutions LLC to conduct your due diligence investigation and maintain your reputation today.