Due diligence is mistakenly perceived as a necessity that only large-scale companies have, especially when we consider the international aspect. This misconception comes from old times when only big companies crossed country boundaries. Today, small and medium sized companies, as well as individual investors, have access to doing business and investing abroad, and therefore face the same risks regardless of their size.
“We want small and medium sized business owners to understand that international due diligence does not have to be a burden if they get the right professional help,” says Paul Fletcher, VP of Due Diligence Services at Wymoo International.
Debunking myths about international due diligence
Frequently, this essential step is skipped in many small and medium enterprises because the business owners or executives in the company feel this is out of their reach, and that their only option is to take the risk and hope for the best.
Due diligence investigations are not a service that should absorb all the company’s resources. Business owners do not need to decide whether to pay for salaries or hire professional due diligence. In fact, international due diligence is accessible and a great investment that can save a company from great losses in the long run. It is essentially a form of insurance that helps business owners and investors make safer, smarter and more profitable decisions.
International due diligence should be customizable
Requirements for international due diligence investigations in large companies are extensive and can be overwhelming if small and medium size businesses face the same requirements. Luckily, the needs for due diligence in a small company are not the same as in a large one. That is why due diligence needs to be customized to the real needs of the business. A small company might want to start by investigating if the business they are dealing with is legitimate, legally registered in the country of operation, if they have filed for bankruptcy (or if their representatives have), and if they have any court records that affect the business operation or that can impact the deal. It is also important to search public and media records for references about the company and verify reputation, as well as of those that represent it.
Depending on the needs of the company hiring the due diligence from a reputable investigator should be a custom solution tailored to your specific needs. For example, are you mostly concerned about the representative, or company, or reputation, or a history of fraud, or all of these? Due diligence has layers, and they do not need to be covered all at once or every time. The investigation needs of one company may not be the same as another, so being able to customize reduces costs and helps small businesses get only what they need.
Finding the right professional investigation help
It is important to find a private investigation company with global coverage with local expertise. You might need due diligence in Turkey one day, and in Poland or China a month later, so being able to have consistency in the service is important. The investigators conducting the due diligence need to be on the ground where you need them so they can have access to the sources of the information (government offices, authorities, company address, etc), and they will also need to know well the laws in place and the right procedures to find such information. Having a professional local investigator take care of the investigation is the most important thing to get the weight of due diligence off your shoulders. You do not need to have specialized resources, you just need to hire the right people with international expertise.
Skipping international due diligence is not a smart move for your business, especially in such troubled times! Do not put your company or reputation at risk. Contact us if you need to verify a person or company overseas, and we can discuss your options.
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