Due diligence
Key areas of focus include:
(i) financial and operations history
(ii) civil and criminal litigation
(iii) business interests
(iv) corporate and management reputation
(v) undisclosed liabilities etc.
Typical procedures include (but not limited to):
■ Review of corporate history, holding companies, affiliates and subsidiaries
■ Establishment of shareholders, management, registered agent and legal representatives
■ Evaluation of corporate status, business activity and legal domicile
■ Financial statement verification together with origin of wealth and funds
■ Review of banking and credit references
■ Past and outstanding litigation and labor disputes
■ Regulatory violations and actions
■ Tax credit liens
■ Real estate mortgages and deeds
■ Review of distributors, suppliers and vendor relationships
■ Media appearances for any past or present problems
■ Corporate conduct and management style
■ Financial viability and future income streams
■ Undisclosed capital investments etc.