Due Diligence and Business Backgrounds:

Before entering into critical business transactions, companies need to have a clear understanding of the personal and business histories of the parties involved.

Years ago, companies did business within their own communities, and were personally knowledgeable about the business and personal reputations of those with whom they were considering doing business. Often, a walk down the street to the facility of a prospective vendor, partner, or customer could inexpensively answer many questions about the capabilities of the other party, simply by observing the operation firsthand.

Today, opportunities with interstate or international partners abound, making business more risky. As companies grow out of their immediate neighborhoods, total strangers present them with different ways of doing business. Because businesses lack firsthand experience with everyone they are considering doing business with, they have the obligation to be careful of the proposals furnished to them.

It has been the experience of ESI International, Inc. (over many years, and hundreds of due diligence investigations), that a surprisingly large percentage of performance or experience claims are untrue, or at best, inflated. Closer examination of deals and parties often reveal undisclosed civil and/or criminal litigation histories, personal and business bankruptcies, false addresses, and serious financial problems, all of which can make a business association less than ideal.

ESI International’s investigation methods move past the traditional computer checks offered by other firms, and expand the investigation scope to develop information from a host of proprietary sources. This information can identify organized crime ties, fraudulent dealings, associations of dubious character, or poor past performance. Our ability to be on the ground where the prospective business is located, returns to our clients some of the home town advantage lost when they moved into the global marketplace.

Not all new business ventures have an unacceptable amount of risk, and not all investigations lead to the killing of deals. To the contrary, many investigations serve to confirm the facts as presented in the proposal or application process. Many times, the investigation will explain perceived inconsistencies in bids, and provide valuable information for use in negotiations. Regardless of the outcome of the investigation, companies can move forward with confidence, knowing that they are making informed decisions based upon the best possible information.