Physical Due Diligence

Anytime an organization, business or individual needs to make an acquisition, merger or partnership, the main thing that needs to be conducted is a due diligence check. In plain speak, this is doing what you can to ensure that what you are being told or led to believe is actually what you are getting.

While this is required by law for major corporate moves, it is largely only so in terms of financial due diligence, which involves accountants going over the books to ensure that the financial health of an organization has been accurately disclosed to the interested party.

What is not as well known or enforced, is the physical , or real world side of due diligence which can have major implications when not conducted.

A physical due diligence investigation involves real world checking of facts and holdings, which can exist on paper but not in fact. The on paper disclosures must be checked against reality as financial papers can be simply created, and when done well, can evade the financial due diligence process.

What a Private Investigator can provide in the conduct of a physical due diligence investigation includes the following:

• Check labour practices and obligations
• Confirm environmental standards
• Verify the existence and effectiveness of businesses and alliances
• Assess business reputation
• Identify the involvement of criminal elements
• Identify and confirm stockpiles of product and resources, including those moving
• Conduct background checks on important personnel and assess conflicts of interest

A PI can help identify these and many other aspects of interest to a prospective move and should be brought in to work in concert with the financial aspect of the due diligence process. Give a local PI a call to see how they can help!

Blog post is courtesy Elemental Investigations: Private Investigator Edmonton, an Edmonton, Canada based private investigator agency. They can be found online at www.elementalpi.ca