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  • Diligentia Group is a boutique investigative firm dedicated to providing law firms, financial institutions and decision makers with comprehensive background investigations, due diligence investigations and legal investigation services.
  • Utilizing a Private Investigator for your Investigative Due Diligence

    by Brian Willingham

    Post image for Utilizing a Private Investigator for your Investigative Due Diligence
    “Due Diligence” is a phrase that varies in meaning between different business organizations and industries, but from a private investigator’s perspective, investigative due diligence most commonly refers to the assessment of the background and reputation of a potential business partner(s) or key player(s) in a venture before parties enter into a substantial financial relationship. 

    Investigative due diligence can also encompass the assessment  of company-wide issues including quality of assets, liability issues (such as lawsuits) or regulatory or environmental issues, but for the purposes of this post, we are only discussing the reputation of a potential business partner(s) or key player(s).

    Minimizing Your Risk
    When your business or reputation is on the line, investigative due diligence can help you minimize the risk of potentially bad investments, costly mistakes or angry investors. If you are not conducting a comprehensive background check and instead are relying on inexperienced fly-by-night  companies that provide unorganized “data dumps” of information from random database records, you are asking for trouble. Thorough analysis of data identified by a trained professional private investigator can assist you in understanding what is out there and help you make informed decisions instead of disastrous ones.

    What key issues can be uncovered on potential business partner(s) or key player(s)?

    • Business Interests – Corporate executives engaging in self-dealing, hidden business interests or historical affiliations that have been the subject of controversy, bankruptcy or sanctions
    • Personal History – Multiple divorce filings with allegations of personal misconduct
    • Professional History – Falsified education credentials or misrepresentations of previous work history
    • Regulatory Issues – Undisclosed regulatory complaints or disciplinary actions taken by state or federal regulatory agency
    • Criminal/Civil Cases – Multiple convictions for driving under the influence of alcohol, allegations of soliciting a prostitute or litigious past
    • Financial Status – Hundreds of thousands of dollars in federal tax liens, credit issues to grievances filed with U.S. Tax Court
    • Assets – Multiple houses and boats which could show someone living beyond their means

    Final Thought
    Investigative due diligence can help you identify self-dealing, hidden interests, personal issues or past red flags on potential business partner(s) or key player(s), that can help you minimize the risk of potentially bad investments.

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