Background checks / Vetting / Due Diligence

Background checks / background screening can be conducted on companies as well as on individuals. Corporate background checks /background screening identify risks in a company which do not appear on a standard corporate balance sheet. Whereas a  traditional due diligence looks exclusively at financial information, background searches focuses on more abstract (but just as important) factors in assessing whether a company can be dealt with in all confidence. A typical background check includes the following items:

• Existence of the company;

• Full institutional details, including capitalization, directors, commissioners and shareholders and other legal data;

• History and business scope of the company;

• Reputation and track record of its directors, executives or other key principals;

• Networks, political links, existence of criminal links,

• Alternative business interests of the company’s key principals;

• Civil litigation and/or criminal record relating to the company itself or any of its key principals.

A background check is generally a combination of thorough documentary research and discreet inquiries with sources in the relevant industry who may have dealt with the subject company and its principals, either in a public or private capacity, and are willing to share information as to its credentials and reputation.

Due diligence is generally preventive (i.e. prior to setting up a partnership, before signing a contract, before purchasing goods over the Internet or dealing in any other business capacity with the subject company)