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Due Diligence is a Life Saver

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Due Diligence is a Life Saver


A life saver is someone or something that can help you increase your life span by saving you from trouble or potential trouble. Doing your homework before you invest heavily in a person, business or investment opportunity is crucial. It may not protect you from all the harm and deception that is associated with the investment, it is not a guarantee of success, but it sure does offer a sense of security and help you come up with a risk mitigation plan where necessary, when and if, any potential danger arises. Due diligence can be considered a life saver as by definition it is the investigation and evaluation of all the pertinent specifics of a business or investment opportunity by looking at its past, present and future trends. You can never go forward if you do not know where you are, where you have come from and where you are headed.

The sage men of old told us to look before we leap. This is a particularly good advice for anyone who wants to invest their money into a venture that may not necessarily promise the hefty returns that you might be anticipating. Due diligence is conducted for various reasons some of which include: verifying that the venture is what it appears to be, identify potential loop holes and undisclosed risks that may make the venture a bad investment, substantiation of the transaction’s compliance with investment or acquisition criteria, as well as gaining information that may be useful for valuing assets and negotiating prices and concessions. The process of looking into the potential business or investment opportunity is more of a investigative than a legal process and hence you may need to attain the help of a private investigator to help you into collecting and analysing all the information that you require to make an informed decision.

A checklist is usually on hand to help the private investigator undertake his or her duties when finding out relevant information to do with the subject of interest. The due diligence checklist has various entities that I would like to briefly touch on and elaborate. The first thing in the checklist is the address history of the subject of interest. Where the subject of interest has been previously located and where it is currently located gives you a picture of its progress and its potential future growth. Where a person or a business is resident can give you a few clues on its vision and how it views itself. You can talk to people around the areas the business was located to establish the image the subject of interest portrayed to its neighbours as well as a few insights on its operations and values. The past address is not that important but the current one is as it will help you know exactly where the subject of interest is officially located.

A private investigator will also check the correct social security of the subject and this will help the investigator in doing a background check. Background checks involve looking at the credit history as well as the criminal history, if any, of the subject as well as verify that the subject you are dealing with is the right subject. This is because some people forge the personal and business documents so as to give information that will make them look more attractive. The private investigator will also track down properties and other assets associated with the subject of interest and will help you identify if there was a failure of disclosure. He or she will also look at court documents do determine if there are court fillings, judgements, liens and lawsuits that the subject was party to and what was the conclusions and if the subject respected the rule of law. Due diligence is a life saver as the private investigator will help you collect enough information about the subject of interest on their past and present and it is up to you to make a decision on whether or not the subject has a future potential that you would like to be associated with.


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