Due Diligence

Due Diligence is primarily carried out by private investigation firms, equity research firms, fund managers, individual investors, risk and compliance analysts, and firms and broker-dealers.

Due Diligence is a process that involves risk and compliance checks, conducting an investigation, review, or inspection to verify facts and information about a particular subject. In simple words, Due Diligence means doing your homework and acquiring of required knowledge before entering into any agreement or contract with another company.

Due diligence is an important business technique to consider before making any key business decisions or acquiring a company. Before you put your company finances into action, you need to understand its due diligence and how to do it correctly.

What is the due diligence process?

An investigator will often use forensic accounting investigations, background checks, surveillance, asset searches, financial investigations, and other corporate investigation methods to find out how a company works. In some cases, investigators will need to review public records, speak with company clients and customers, and contact overseas offices to uncover the legitimacy and potential of a company. A good private investigator will work with you to determine which methods your particular investigation needs.

Who needs a due diligence check?

A due diligence check is needed for all companies and organizations if they engage in company mergers or acquire stakes, property, real estate, investment, investors, or insurance transactions in other companies, or if they work with business partners, especially in an international context. Ongoing due diligence is required for all your business partners, vendors, buyers & sellers to ensure compliance. It is also a good idea to assess your target company, and prospects before signing a sales contract to avoid issues in the future.

Why does Due Diligence Matter?

Due diligence helps investors and companies understand the nature of a deal, the risks involved, and whether the deal fits with their portfolio. Essentially, undergoing due diligence is like doing “homework” on a potential deal and is essential to advise investment decisions.

Can I conduct due diligence on my own?

Yes, but it wouldn’t be effective. Private investigators are experienced, they know exactly what information they’re looking for, they also can obtain evidence legally and they have access to resources that are not available to the public. An investigator will be able to get you accurate information in a timely manner so you can dedicate your time to other aspects of the transaction.

What are the types of Due diligence?

Legal: This aspect deals with the intellectual property of the company in question. It involves contracts, loans, property, employment, and pending litigations.

Financial: Financial due diligence verifies a company’s finances. It looks at things like earnings, assets, liabilities, cash flow, debt, and management.

Commercial: Commercial due diligence brings into consideration the current market. This includes conversations with customers, competitor assessments, and any business plans in place.

Other: External types of due diligence include taxation, pensions, human resources, and IT systems.

For more information on Due Diligence investigations please contact us for a free consultation. Call us today at +41-44-586-60-33 or fill out the online form on our website.