AVOID A BAD BUSINESS OR INVESTMENT DECISION.
Business relationships entered into too quickly can lead to fraud and other losses. Before entering into any new business arrangement, such as a merger or acquisition, a due diligence investigation is required.
“The goal of any due diligence investigation is to avoid a bad business or investment decision.” This quote is from Trace Investigations founder Don C. Johnson, Certified Legal Investigator™ in the reference text Corporate Investigations, published by Lawyers & Judges Publishing Company, Inc., 2002 edition. Johnson authored Chapter 11, “The Due Diligence Investigation,” which still serves as a manual for conducting an investigative due diligence. At the time, studies illustrated that the U.S. economy lost billions of dollars annually to various business frauds and economic crimes. Those losses have only continued to climb and, as Johnson noted then, “Economic crime is in itself a growth industry …” Any business owner or corporation board of directors considering a business merger or acquisition is duty bound to conduct a due diligence investigation on that proposed transaction.
TRACE INVESIGATIONS CAN ASSIST YOUR BUSINESS BY:
- Investigating the principals of merger and acquisition targets;
- Researching relevant markets and industry sources;
- Investigating past performance and history of the targeted company;
- Conducting field investigations to verify or obtain information.
THE BENEFITS OF A DUE DILIGENCE INVESTIGATION:
- Ability to Eradicate: A client is reassured on a strategy or alerted to its problem;
- Acquisition Assurance: Standards of care in normal business transactions are met;
- Compliance Satisfaction: Duties under controlling law and regulatory compliance issues are satisfied;
- Continued Profits Assured: Future business and economic losses are prevented.
