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Due Diligence The purpose of due diligence is to assess risk in proposed business ventures and in situations involving buyouts, mergers, acquisitions or divestitures. Due Diligence establishes the reputation of a corporation and its principals, determines the business ethics of the principals and demonstrates the propensity for future problems. It is work which must be performed in order to provide the means for arriving at the best-informed business decision. Previously unknown factors and reduced risk will allow clients to demonstrate to interested third parties that all reasonable steps have been taken to protect the company, its investors and the public. The ability to demonstrate reasonable behavior will positively result in reduced liability and the avoidance of adverse publicity. On November 1, 1991, the United States Sentencing Commission established the Federal Sentencing Guidelines which introduced mandatory sentencing guidelines for organizations found guilty of serious crime. The central focus of the Guidelines is to impose fines for all Felonies and Class A Misdemeanors. Crimes such as bribery, criminal infringement of copyrights and trademarks, fraud, insider trading, antitrust violations, tax offenses, money laundering and Rico are among the offenses included. All federal criminal offenses are subject to the probation provisions of the Guidelines. Fines and penalties are based upon the particular facts and circumstances of the case and are determined through legal proceedings. Business Intelligence Incorporated provides the legal and operational experience to ensure that its clients are in the best position in having demonstrated diligent behavior in compliance with the Federal Sentencing Guidelines. Types of Due Diligence Inquiries are as follows: - Determine if a company maintains appropriate registration
- Identify stock ownership
- Develop information provided by the subject company to business reporting agencies for comparative analysis
- Verify professional licensing of companies and principals
- Litigation searches (civil, criminal and bankruptcy)
- Real property searches
- Personal property lien searches (Uniform Commercial Code filings)
- Regulatory agency sanction searches
- Media research and analysis
- Develop additional business interests
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