Corporate Risk Reduction | Business Relationship Verification | Organizational Due Diligence Checklist
What is “due diligence?” The best practical definition to which AIS subscribes is:
A comprehensive investigation to examine and evaluate the soundness, viability and potential risk of entering into a contractual or business relationship, acquisition or other mutual association.
This is often easier said than done. In many respects, what a prospective business associate prefers you know will be plainly represented. The objective is to not only confirm the accuracy of those representations, but to identify derogatory, questionable or otherwise undisclosed historical or contemporary factors relating to the party that might preclude a potential association.
Due Diligence Factors
-Criminal conviction histories relating to principals
-Undisclosed bankruptcy proceedings
-Excessive “course of business” litigation
-Litigation(s) representing fraudulent or unethical business practices
-Federal/State criminal indictments vs. the subject company
-Regulatory actions relating to alleged or demonstrated mismanagement or fraudulent/unethical business practices
-Revocations/suspensions of a professional license(s)
-Published accounts of a derogatory nature
Please give us a call to discuss your due diligence screening needs. The proper exercise of business due diligence can provide confidence in your decision of business partners and peace of mind to your overall organization.