Contemplating a new partnership, joint venture, merger, or restructuring? Then take advantage of a due diligence investigation. In today’s business environment, timely and accurate intelligence isn’t an option — it’s a necessity.
Before making a move, call us to help uncover possible hidden “Gotchas”
Crimcheck is uniquely qualified to spot potential fraudulent business or investment opportunities as well as unqualified executives. Our Due Diligence Check utilizes our extensive network of database sources, public record retrievers, law enforcement, news media and business contacts to develop the most reasonably accurate picture of the person or business you are dealing with.
A Due Diligence Check is the procedure of evaluating all information about an entity or individual. Let Crimcheck help you obtain the information you need to make an informed decision.
Your customized report can include searches in the following:
- Name and Owner of Business
- Possible Owners and Officers
- Employer Identification Number
- Criminal Conviction Check
- Civil Litigation Check
- Federal Bankruptcy Report
- Business Credit Report
- Federal Criminal Check
- Federal Civil Check
- Office of the Inspector General
- Media Check – A reporting of instances of the company and owners in the media
- Personal Profile Database Check
- Secretary of State/Corporations Check
- Employment, Education and Personal References
- …and many other options
Our goal is to provide you with fast and comprehensive reports. We realize that time is money. Our typical turnaround time is about 3-5 days.
Why a Business Due Diligence Check?
Whether due diligence needs to be performed due to a merger, acquisition, development or investment, the basic premise is the same. Your company needs to ensure that there is no outstanding litigation, judgments, liens, or other legal issues that can complicate or prolong the process. Crimcheck is unique in that our investigative experience has helped us create a set of services specifically designed for business due diligence. When entering into a business relationship it pays to investigate in order to minimize exposure to risk.
What is a due diligence check?
Due diligence is any investigation by one party of another party. When used in a fundraising context, it usually refers to the investigation conducted by a prospective investor into the background of a company, its management team, and the statements and assumptions contained in it business plan. It is usually intensive, time consuming, and thorough. It is not unusual for the investigation to take weeks or months to complete.
Due diligence customarily includes background checks on the management team, independent verifications of statements made in the business plan, and studies of the company’s product and market. It includes extensive questioning of management and other company personnel. Most venture capitalists will talk with company suppliers, customers, competitors, and others who know the company and its industry.
Verify that ‘what you see is what you’ll get’ in the business transaction. Whether its mergers and acquisitions or unregistered securities offerings, it’s a good idea to check out the principals in the deal and make sure their business history checks out.
Crimcheck, Inc. conducts background investigations of company officers and their affiliations. A quick court records search might reveal a history of judgments and fraudulent activity or an overly litigious businessperson. Business credit reports can contain valuable information. It takes a certain skill to interpret a business or personal credit history. There is a lot of information in there that might escape the inexperienced eye.
Crimcheck, Inc. is uniquely qualified to spot potential fraudulent business or investment opportunities as well as unqualified executives. Our Due Diligence Check utilizes our extensive network of database sources, public record retrievers, law enforcement, news media and business contacts to develop the most reasonably accurate picture of the person or business you are dealing with. Our standard checks list of a typical due diligence check is attached. This list can be expanded to include a wide range of additional investigative sources such as auditing of financial statements, personal interviews with company suppliers, lending institutions and customers when applicable.
At Crimcheck, Inc. our goal is to provide you with fast and comprehensive reports. We realize that time is money and we can normally turn-around a basic Due Diligence check in about 5 days. More extensive checks depend on the complexity and scope of the request. Also since most checks of this nature fall outside the scope of the Fair Credit Reporting Act we can bring to bear a more thorough and extensive set of information resources.
What is Included in a Business Due Diligence Search?
The Business Due Diligence process is different for each company and industry. While one corporation may need to verify all government watch lists, others may find that financial data is more important for their needs. For example, a due diligence search for an acquisition may include
- Civil Litigation Search: Any pending civil litigation at the local and federal levels
- Media Search: A search of all internet/print/television media files for negative publicity
- Federal Civil/Bankruptcy Search
- Government Sanctions Database Searches
- Business Credit Reports
- Incorporation/Ownership Records
The standard Crimcheck due diligence package includes the following, but additional services can be added to suit your needs:
Crimcheck Due Diligence
- Felony
- Misdemeanor
- Social Security Number Trace
- Sex Offender Search
- Motor Vehicle Report
- Education Verification
- Employment Verification
- Federal Criminal
- Federal Bankruptcy
- Media Search
- Judgments & Liens Database
- OFAC
- OIG Denied Parties List
- County Civil
- Federal Civil
- Professional Reference
- Professional License Verification
- Global Sanctions Check
And searches on the principals involved in the transaction could include:
- Criminal/Civil both at federal and local levels
- Sex Offender Search
- Media Search
- Professional/Personal References
- Professional License Verifications
- Personal Credit Reports
- Driving Records
- Education/Employment Verification
Due diligence reports can also vary based on the industry. Financial, Technology, Healthcare, Business, etc. all have difference requirements. Some examples are shown below.
Financial Due Diligence Checklist
- Inventory listing
- Crimcheck search of all pending/past litigation
- Crimcheck Media Search both on the company and principle
- Comparisons of financial statements from present to prior years
- Firm Audit reports
- Crimcheck Business Credit Report
- Crimcheck Criminal Records Search
- Crimcheck Government Sanctions Database Searches
- Auditor’s Reports and Financials for at least three years
- And any other reports requested by your Financial Advisor and CPA
Real Estate Due Diligence Checklist:
- Crimcheck Business Credit Report
- Crimcheck search of all pending/past litigation
- Crimcheck Business Report
- Search of all company business locations.
- Deeds, mortgages, titles, zoning reports etc.
Acquisition Due Diligence Checklist:
- Crimcheck search of all pending/past litigation
- Crimcheck Media Search both on the company and principle
- Comparisons of financial statements from present to prior years
- Audit reports
- Crimcheck Business Credit Report
- Crimcheck Criminal Records Search
- Crimcheck Government Sanctions Database Searches
- Auditor’s Reports and Financials for at least three years
- Inventory listing
- And any other reports requested by your Financial Advisor and CPA
Investment Due Diligence Checklist
- Crimcheck Media Search both on the company and principal
- Comparisons of financial statements from present to prior years
- Audit reports
- Crimcheck search of all pending/past litigation
- Crimcheck Business Credit Report
- Crimcheck Criminal Records Search
- Crimcheck Government Sanctions Database Searches
- Auditor’s Reports and Financials for at least three years
- Inventory listing
- And any other reports requested by your Financial Advisor and CPA
Terms to Know
Acquisition: The purchasing of a company by another company
Due Diligence: The care that an individual or business takes to avoid harm or negative impact. If an individual or business fails to complete their due diligence, this is considered negligence.
Entity: The business, partnership or organization
Financial Capital: Money used by businesses and entrepreneurs to make their products or to provide their services
Joint Venture: A contractual business agreement similar to a partnership however, a joint venture is based on a single business transaction.
Merger: The combining of two or more businesses
Principal: The owner of a company. Also, the original amount of money loaned (not including interest) or invested (separate from earnings).
Unregistered Securities: Any security that is not registered with the Securities and Exchange Commission (SEC). (Before a security can be made public for sale, it must first be registered with the SEC.)
Venture Capital: The financial capital (money) given to new companies starting up that may pose a high potential but also a high risk by investors
