Due Diligence Services
There are always risks involved in the business world, regardless of whether you’re considering a new partnership or hiring a new employee. For your business’ safety, the people you plan to work with – whether it’s through employment or business transaction – should be adequately checked. That’s where due diligence comes in.
What is due diligence?
Due diligence is an investigative process that identifies, verifies and confirms the claims of another party. Ideally, this is done before business tasks such as signing a contract, buying a company, forming a partnership or accepting a new client.
Why is due diligence vital to your business?
You may think to yourself, “isn’t a simple interview or internet search enough?”. It’s important to remember the potential consequences of not performing a proper due diligence check.
Why perform due diligence?
- Quantify the real risk of doing business in foreign and local markets
- Assist in accurate decision-making
- Identify red flag issues
- Provide leverage for business valuation and negotiation purposes
- Verify that investment or acquisition criteria have been met
- Encourage potential investors to believe your business is risk-free in terms of fraud
- Ensure the entity you’re buying a business from (or selling to) is trustworthy
Due diligence can be used on individuals, not just business-level circumstances.
Every successful business will eventually need to hire an employee to help with business sustainability and growth. Unfortunately, it’s still common for applicants to falsify information in their CV by stretching the truth regarding their experience or skills. This is where we can perform due diligence on the potential employee. This process is we refer to as a pre-employment screening; it’s where we thoroughly investigate the background of your job candidates. You can learn more about our Pre-Employment Screening services here. In the circumstance that you’re hiring someone at an executive level (typically C-level), you’ll need the help of our Executive Background check services.
The current business world is fraught with fraud and every business – regardless of size – is at risk. There are some fraudsters who may try to exploit your business from within as an employee. Others may target current employees by posing as clients, then exposing the company to criminal activity. Due diligence significantly reduces the risks of hiring those with a background that poses a threat to your business.
Our due diligence services can be broken into two areas
Pre-emptive due diligence
Pre-emptive due diligence is a risk-reduction process that should be the priority for every business, especially in a world where business transaction exploitation can occur at any stage.
Our pre-emptive due diligence services help clients identify, understand and plan for risks associated with a pending business transaction, such as a merger, an acquisition or an investment.
Read more about our pre-emptive due diligence services here.
Post-transactional due diligence
Sometimes even thoroughly planned business transactions can result in issues that put your company at risk of loss. For example, a company you bought inventory from was fake or sold you faulty goods, putting you at a loss. In this situation, a review on matters such as compliance, litigation and tax can help businesses unearth information relevant to any post-transactional errors or financial losses.
Our post-transactional due diligence services are there to assist clients that have experienced problems and now need to identify what went wrong and how to recover from the situation.
Read more about our post-transactional due diligence services here.
Call Blackhawk Intelligence today on +44 (0)20 8108 9317 and let us help you reduce your corporate risk.
Blackhawk can conduct various types of due diligence
Environmental due diligence
In light of the current talks and demonstrations by the Extinction Rebellion and environment activists like Greta Thunberg, protecting the environment is progressively becoming a top priority for businesses. There is a growing expectation from society that businesses look after the environment, reduce their carbon emissions and maintain solid environmental standards. Environmental ethics due diligence is the act of a business entity analysing itself and creating a plan that focuses on good corporate social and environmental responsibility.
By not implementing any environmental protection plans, you run the risk of violating related environmental laws. This allows local authorities to penalise you. Compliance with environmental permits, for example, waste disposal and packaging removal all need to meet certain environmental regulations. Failure to do so could result in stressful situations for your business down the line.
Human resources due diligence
Put simply, human resources due diligence assesses the employment structures of a potential partner. This form of due diligence allows an entity to gain insight into the number of employees within a business, analyse their leave policies, contracts and salaries as well as any disciplinary cases in progress. It aims to unearth any abnormalities or discrepancies with the structural set up of the country.
Legal due diligence
There is always the risk that a business transaction or merger and acquisition (M&A) can result in future legal problems. Blackhawk’s legal due diligence services can significantly reduce those risks. Legal due diligence is the process of gathering, understanding and analysing any and all legal risks associated with a business interaction such as am M&A.
Our legal due diligence service looks into many areas, including, but not limited to:
- Ownership of a company (share certificates issued to board members, directors or key stakeholders)
- Management structures
- Company procedures
- Legal obligations such as loans
- Ongoing litigation, if any
Financial due diligence
This form of due diligence involves examining financial data, such as past audited statements and future projections and questioning their basis. We look at what constitutes something to be a variable cost and how they calculated their sales forecast. It also involves assessing a company’s debt situation. As one of our most common requests, our expert service is experienced in maintaining your businesses financial wellbeing.
As financial due diligence is typically carried out before the merging or acquisition of a company, think of our service as a risk assessment tool that verifies whether a deal is worthwhile.
International due diligence
This form of due diligence is vital for companies that already span numerous nations and legal jurisdictions or are planning to go international. International due diligence is the act of acquiring and analysing local information not publicly available in another country. This information can include:
- Verification of a foreign business partner or client
- Local political impact
- Local economic landscape
- Potential risks pertaining to local illegal activity and/or corruption
- Localised issues
Over many years, we’ve developed a base of trusted resources in European, SE Asian and Far Eastern nations as well as the US. Pursuing investigations in certain locations, such as the former CIS states, requires that we have access to discreet human intelligence. We’ve built an efficient network in these countries to assist in client investigations where local language expertise and local contacts are essential. We also have an office in Israel with considerable security and investigative resources at hand.
Head to our international due diligence services page for more information.
Intellectual property due diligence
Intellectual property theft is becoming more common in the business world. As such, the logical plan of action for a company is to review and verify the intellectual property ownership, usage, and licensing of another party before signing a contract. This party can be a company or an individual.
At Blackhawk, our IP due diligence service involves at least one qualified patent attorney with expertise in intellectual property law as well as our team of due diligence research experts.
We explain these various forms of due diligence further in “Due diligence isn’t just an option, it’s essential”.
Know your customer
In the United Kingdom, Know Your Customer is a practice often used by financial institutions and banks and is governed by the Money Laundering Regulations 2017. Know your customer (KYC) is typically used to verify their customer’s identity, assess their suitability and determine all potential risks, especially in areas of money laundering, fraud and terrorist financing. Customer and supplier contracts, agreements and equipment leases are integral to a company’s commitments.
While this may all appear to be extreme, it’s a process that is of great benefit to your business, regardless of its size. Trade of any sort is a common factor in the business cycle, so it is crucial for your business to know who you’re dealing with.
You can take KYC a step further with KYCC – Know Your Customer’s Customer. This process identifies and assesses the relationship between your customer and their customer.
Call Blackhawk Intelligence today on +44 (0)20 8108 9317 to discuss how our due diligence service can help your business. Our years of expertise in financial and legal due diligence make us your first point of call in ensuring your business’ security. Our goal is to support you.
The goal of our enhanced due diligence services is to empower our clients and provide a business safety net. Gaining a full view of the circumstances and risks a business transaction represents enables our clients to maximise the value of the transaction and reduce the risks
Our services reflect the highly confidential nature of our clients’ business dealings. As such, all our investigations are conducted with the highest level of discretion, professionalism and regard for ethics.
Blackhawk Intelligence is a Data Protection Act registered company in London. We go to exceptional lengths to make sure our due diligence reports are accurate and thorough. We ensure that the process of our due diligence services protects the chain of evidence.
With Blackhawk by your side, you’ll have the expertise, reassurance and support to move forward with confidence. Your company is our top priority.
Call +44 (0)20 8108 9317 today and speak to a member of our due diligence services team to discuss your situation in confidence. Alternatively, you can send us an enquiry via our Contact Form and we will get back to you as soon as possible.