A due diligence background check helps a company gather valuable information before establishing a new partnership, before acquiring another company, before making a key transaction, and before making a business decision. But who and what should a company screen lead up to one of those events? At CS Business Screen, we offer two primary types of due diligence background checks: screens of specific companies and screens of specific corporate officers.
If your company is coming up on an important decision about a third party, here’s a look at when you should screen a company, then you should screen a corporate officer, as well as when you should screen both.
Due diligence background checks on companies help confirm the legitimacy of a company and its operation while also raising any red flags about the company. Specifically, a business background check of any given company will help answer questions like:
A quality due diligence background check can answer other questions, too, but the ones above are at the core of what a screen of a company provides.
Think of the following scenario: Your company is about to enter a new partnership. Naturally, you want to insulate your business from any legal or ethical implications related to the partnership. Based on our experience, there’s about a 15% chance that the prospective new partner has at least one relevant record that will emerge during a due diligence background check of the company. Wouldn’t you prefer to be aware of that record?
Due diligence background checks on corporate officers help in understanding the type of person who is running a business. They can also provide insights into the culture of a company and where that culture comes from. Specifically, a business background check of any given individual will answer questions like:
Again, screens of individuals can answer an array of questions, but the ones listed above are primary examples of what a due diligence background check can turn up related to a person. Imagine for a moment that your company is about to acquire a new company. Of course, you want as much information as possible about the individuals that come over as part of the acquisition. Based on our experience, there’s about a 20% chance that the potential ownership or key managers have at least one relevant record that will emerge from a due diligence background check. To make the best business decision, wouldn’t your company want access to those records?
While there are times when you only need a company background check and circumstances when you only need an officer background check, there are also situations when a business should conduct both. For example, companies often acquire competitors for their products, assets, and client base as well as for their team members. Before the closing of a major acquisition, a due diligence background check on the company can unearth any ethical or legal implications related to the products, assets, and client base. Similarly, a due diligence background check on individuals can unearth any ethical or legal implications related to corporate officers. By screening only a company or only an officer, you may be missing crucial information that screening both would uncover.
At CS Business Screen, we walk alongside companies during moments of incredible importance — moments when they are pursuing major acquisitions, taking on new partners, making large investments, hiring key executives, and more. Whether those companies want company screens, officer screens, or both, we offer actionable information that is:
Are you ready to screen a company, an officer, or both? Contact us today and learn how we can help secure the information you need.