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Due Diligence Inquiries

Due Diligence Inquiries

It is imperative in this uncertain world to verify the claims made by e.g. a would be investment business partner. It is important to trace any adverse circumstances in the personal, business and reputational history of someone who may sound very convincing in his or her sales pitch to you.

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Conversely, due diligence inquiries may reveal that an individual or a company or organization have actually been underselling their true market and brand name and integrity value, and foreknowledge of this will significantly strengthen your confidence in going ahead with the transaction. Let Rannoch Consulting & Research conduct this research.

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The term “due diligence”

The term “due diligence” was coined in a provision of the 1933 Securities Act: if a stock broker had sold a particular stock and subsequently material information came to light that had not been disclosed to the buyers of that stock, then the broker’s prior due diligence efforts were a defense to allegations that they had failed to disclose the adverse material information. The same could be applied to any business transaction situation. Have you conducted sufficient due diligence?

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Conducting due diligence

Conducting due diligence is a cost of doing business which in the long run will save an enterprise the potential for far greater costs arising from the increased risks of losses arising from not “looking before you leap.” It also raises one’s level of confidence to do business since one has a higher level of comfort. Do you feel confident?

Due diligence is not simply looking

Due diligence is not simply looking for skeletons in the closet and verifying the facts as portrayed to you. Due diligence inquiries can reveal positive as well as negative information and the discovery

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of undisclosed positive findings may in fact raise the value of a prospective acquisition. Do you have all the facts?