Due Diligence

Simply put, due diligence means doing your homework first. Verify and vet to obtain the facts about a person’s background or business before you decide to trust – or not. Facts will trump bravado every time. Bernie Madoff’s attitude of “How dare you challenge me” when investors queried him about the particulars of his operation is a case in point.

The keys to success are identical whether you are a corporate firm considering making a loan or a merger or an acquisition, or, if you just want to know more about that great guy or gal you met on a dating website. In both instances, hire a professional to verify or refute their story.

Business partners, business affiliations and clients. These are the types of references / associations that subjects provide to demonstrate their qualifications for hire or lending. Sometimes these individuals and their business associations are outright fictitious, or they’ve been dissolved and no longer exist, or, they’re under investigation by the SEC or another relevant state or federal agency. SIA finds the people behind the business and not always, but often, can get them to talk.

SIA can investigate potential business partners, or suitors, contractors, companies, and borrowers, and immediately identify the red flags that will indicate if he or she is lying (or not) about their qualifications. Investigations include but are not limited to; establishing a real name, marital status, age, addresses, property ownership, net-worth, business affiliations, employment verification credentials verification, liens, bankruptcies, judgments, criminal history, and evictions.

An ounce of prevention up front will allow you to avoid the pitfalls of engaging in financially risky ventures.