Due Diligence: Phase Two of Hg’s Phased Approach

/d(y)o͞o/ /ˈdiləjəns/ :: exposing financial risks, reputational issues, criminal activity, and legal actions detrimental to your client’s personal and business stability.

Hg’s final in a three-part series on conducting a due diligence investigation.

In our last blog post, we discussed Phase One of our due diligence investigation. As we discussed earlier, many of our clients are satisfied with the amount of online information we gather for their target in this phase, but sometimes we uncover information that requires us to go move on to Phase Two.

Being responsive to your client

You’ve sent your report to Mr. Z, who requests a phone call to clarify some of your findings. He informs you that, while satisfied with what you’ve uncovered thus far, he’d like you to conduct a deeper dive.

As it turns out, Hg’s Comprehensive Report revealed Jane O is connected with a CEO via LinkedIn and Facebook who, according to a Wall Street Journal article, is under investigation for allegedly violating sections of the Foreign Corrupt Practices Act. There was a photo of Jane, Joe, and this CEO at a benefit gala three months ago that appeared on the website for Vitamins 4 All, a non-profit being investigated by the IRS for abuse of its 501(c)(3) tax status. Additionally, your investigation uncovered information that FINRA revoked Jane’s stockbroker license six years ago—a year before she and Joe formed Lifesup.

Mr. Z understands from your Recommended Next Steps what further investigations you feel necessary to bring him peace of mind. Your due diligence Comprehensive Report revealed some questionable findings that require Phase Two: Boots-on-the-ground work, with discreet interviewing, intelligence gathering, possible surveillance, and document retrieval.

Now that Mr. Z has initiated the next step in your investigation, you need to move on to Phase Two of due diligence investigation. In this stage, you will contact references and send court retrievers to compile data wherever the person lived or worked — a step that ensures all public records have been secured and analyzed.

Having the Right Information to Make the Right Decisions

At Hg, we arm our due diligence clients with information on national and foreign business transactions, legal and regulatory compliance, and individual background checks, so when they get to the negotiation table they’ll have a comprehensive understanding of their potential partner’s reputation, assets, liabilities, and affiliations.

You can read extensively about Hg’s Phased Approach in our books Guide to Online Due Diligence Investigations and Business Background Investigation or purchase our March 2018 Webinar: Due Diligence & Public Records. Follow us on Twitter @HetheringtonGrp to follow our blog.  

2018-06-21T10:50:57+00:00 June 27, 2018|Tags: , , , , , , , |