Due diligence is a thorough research process conducted by investigators to gather information about a company or individual.
There are typically three phases to a due diligence investigation: preliminary (also known as online due diligence), comprehensive (also known as boots on the ground), and recommended next steps.
The Three Phases of Due Diligence Investigations:
Phase One – Preliminary Due Diligence (aka Online Due Diligence)
- conduct multitudes of database and repository searches online
Phase Two – Comprehensive Due Diligence (aka Boots On the Ground)
- send out record retrievers in every county the Subject has lived, worked, and gone to school. Public Record Retriever Network (PRRN)
Phase Three – Recommended Next Steps. How deep does your client want to go?
To be successful in this field, it is important to have critical thinking and imagination, proficiency with a computer, and access to the best databases and services.”
Many skills are necessary for conducting effective due diligence investigations. These include critical thinking and imagination, proficiency with a computer, the ability to speak the language of the industry, and access to the best databases and services.
It is also essential to stay ahead of the curve by reading everything you can about your tools, sources, knowledge, and industry.
When conducting due diligence for business purposes, it is always a good idea to check the legitimacy of an address.
Some helpful information aggregator databases to consult include Dunn and Bradstreet, Experian, TransUnion, TLO, Westlaw, LexisNexis, and IRBsearch. Hoovers.com is also a good resource for general business research information.
Establishing a research methodology and style guide is vital when conducting due diligence investigations.
This will help you to record your findings in an organized and efficient manner.
There are many different types of diligence services available, including financial due diligence, investigative due diligence, and more.
A taxonomy, or a list of possible terms and expressions, can also help you get closer to the answers you seek.