Due diligence is the thorough research of a topic utilizing the tools available and the resources that are accessible.
Investigators conduct due diligence on companies and the employees.
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?
Necessary Investigative Skills:
- Critical thinking and imagination
- Proficiency with a computer
- Speak the language
- Access to the best databases and services
Stay ahead of the curve on your tools, sources, knowledge, and industry. Read everything.
Information Aggregator recommendations (databases):
- Dunn and Bradstreet
When conducting business due diligence, always check the address to see if it’s legit.
Taxonomy: a list of possible terms and expressions that will get you closer to the answers you seek.
Recording Your Findings
Establish a research methodology and style guide.
Know the Industry – Hoovers.com is a good resource for general business research information.