Corporate Due Diligence
Corporate due diligence is similar to individual due diligence but does differ in key ways. There is more information available about companies and instead of making the due diligence process easier, this can make it more complicated. Sifting through mountains of text to find what is relevant in the space of due diligence. A sound approach to corporate due diligence should include elements of;
Recent litigation involving the company specifically around discrimination and criminal lawsuits. It is common to find lawsuits from industry competitors. Most of these, while they still should be checked, may not rise to the level of a concerning red flag
Current events of countries where the company does business. Navigating the international relations of countries like Iran, Saudi Arabia, and Russia can inform you about why a company would choose to do business there and if you want your organization associated with that.
Scrutinization of key company leaders. Checking the CEO, the Board, and other top executives will give you an idea of company culture that is more illuminating than a well crafted mission statement and may lead to the discovery of information that may cause your organization to pause.
While corporate due diligence looks similar to individual due diligence, it diverges in these key ways and it is important to keep that in mind when approaching the corporate space.
