We carry out research on people and property. This is sometimes referred to as ‘Due Diligence,’ ‘Vetting,’ or ‘Background Checking.’ In plain English, due diligence means doing your homework.
Some of the questions commonly asked by during this process include:
“Are the company’s assets valued correctly and fairly?”
“Are there any hidden liabilities?”
“Are profits going up or down?”
“Does the business have a healthy cash flow?”
Research can be requested for a variety of reasons. A business person may be considering a partnership with another professional and want to know that person’s financial standing and integrity. One business may be considering buying out another and they may require extensive details on company directors’, trademarks and business assets.
Another example may involve a medium size business wanting to vet a potential employee who, if hired, will have access to critical and confidential company data. The greater your knowledge, the lesser your risks.