Business Partner Due Diligence

Do you need to conduct Business Partner Due Diligence?

Independent business partner due diligence investigations for companies, directors, investors and entrepreneurs who need to know who they are really doing business with before committing money, assets, information or reputation.

Entering a new business relationship can involve significant financial and reputational risk. A potential partner may appear credible, experienced and commercially successful, but their wider business history, directorships, previous ventures, corporate connections, disputes or professional claims may reveal information that has not been disclosed to you.

Are They Safe provides confidential Business Partner Due Diligence and corporate intelligence investigations throughout the UK and internationally.

We help businesses, investors and professional advisers independently verify information, investigate the people behind commercial relationships and identify potential risk indicators before important decisions are made.

Our investigations can examine company and director history, business interests, corporate connections, insolvency indicators, adverse media, professional claims, litigation and disputes where lawfully available, online presence, international connections and inconsistencies in information provided to you.

Considering a new business partner, investment or joint venture? Investigate before you commit.

What Is Business Partner Due Diligence?

Business partner due diligence is an independent investigation into an individual or company before entering into a significant commercial relationship. It is designed to answer a fundamental question:

Who are you really doing business with?

A standard company search can provide useful information, but investigator-led due diligence goes further. It examines the people, companies, history, relationships and potential risk indicators behind the information you have been given.

A Business Partner Due Diligence investigation may help establish:

• Whether a person’s identity and background are consistent with the information provided
• Their current and previous company directorships
• Previous companies and commercial ventures
• Relevant business failures or insolvency indicators
• Undisclosed companies or business interests
• Connections with other individuals or organisations
• Potential conflicts of interest
• Relevant adverse media or reputational information
• Professional and commercial claims
• International business interests and connections
• Relevant litigation or commercial disputes where information is lawfully available
• Inconsistencies requiring further investigation

The purpose is not to search for something negative. It is to provide independent intelligence that enables you to make a better-informed commercial decision.

Who Uses Business Partner Due Diligence?

Business Partner Due Diligence can assist individuals and organisations considering significant commercial relationships or transactions.

Clients may include:

• Business owners
• Company directors
• Entrepreneurs
• Private investors
• Shareholders
• Family offices
• Solicitors
• Accountants
• Corporate advisers
• Companies considering joint ventures
• Businesses appointing strategic suppliers or distributors
• Organisations considering international partnerships
• Companies considering significant investment
• Businesses undertaking acquisitions

When Should You Investigate a Potential Business Partner?

The best time to conduct due diligence is generally before contracts are signed, substantial money changes hands, ownership is transferred or commercially sensitive information is disclosed.

Business Partner Due Diligence may be appropriate when you are:

• Entering a new business partnership
• Considering a joint venture
• Investing in a private company
• Accepting significant investment
• Bringing a new shareholder into a company
• Appointing a director or senior executive
• Entering an international commercial relationship
• Appointing a significant supplier or distributor
• Considering a franchise arrangement
• Negotiating a substantial commercial agreement
• Considering the acquisition of a business
• Lending substantial funds to a business associate
• Sharing intellectual property or commercially sensitive information
• Concerned about claims made by an existing business associate

Due diligence can also be commissioned after a commercial relationship has begun where new information, unexplained behaviour or inconsistencies create concern.

What Does a Business Partner Due Diligence Investigation Include?

Every investigation is tailored according to the individual, company, jurisdictions involved, commercial decision being considered and level of potential exposure.

Depending upon the instruction and lawful information available, enquiries may include the following.

Identity & Background Verification

We can examine relevant information concerning an individual’s identity, professional background and business history.

This can help establish whether important information supplied during negotiations is consistent with independently available information.

Company & Directorship History

A person’s corporate history can provide important insight into their wider commercial background.

Our corporate intelligence enquiries can examine:

• Current directorships
• Previous directorships
• Connected companies
• Previous business ventures
• Company formation history
• Changes in company control
• Dissolved companies
• Registered company information
• Relevant corporate relationships

Rather than looking only at the company involved in the proposed transaction, we can examine the wider corporate history surrounding the individual.

Previous Business Failures & Insolvency Indicators

A failed company does not automatically indicate wrongdoing. Legitimate businesses fail for many reasons.

However, repeated company failures, unusual corporate patterns or undisclosed insolvency history may be relevant when assessing a high-value commercial relationship.

Our investigators can examine relevant publicly and lawfully available information concerning previous businesses and insolvency indicators.

Undisclosed Companies & Business Interests

A potential business partner may have commercial interests or relationships that have not been disclosed during negotiations.

In some circumstances, these connections may create a potential conflict of interest or reveal information relevant to the proposed transaction.

Corporate intelligence can help identify relevant connections between individuals, directors, companies, addresses, businesses and associated entities.

Adverse Media & Reputational Intelligence

A person’s reputation and previous commercial activity may not be apparent from official company records alone.

Structured adverse-media and open-source intelligence research can identify relevant reporting, historical controversies, business disputes, allegations and other reputational information.

Information is assessed in context. An allegation appearing online is not automatically treated as fact.

Litigation & Commercial Dispute Intelligence

Where lawfully and publicly available, relevant litigation, judgments or commercial disputes may provide useful context concerning an individual or company’s business history.

A single commercial dispute does not necessarily indicate a problem.

However, repeated disputes involving previous partners, investors, suppliers or customers may justify closer examination.

Professional & Business Claims Verification

Potential business partners may make claims concerning previous businesses, investment experience, professional positions, qualifications, major clients, international operations or commercial achievements.

Where appropriate, investigators can seek to independently verify relevant claims and identify inconsistencies requiring further examination.

Open-Source Intelligence (OSINT)

Professional open-source intelligence can provide information that is not immediately apparent from conventional company searches.

Depending upon the circumstances, OSINT research may identify:

• Online business profiles
• Professional history
• Publicly available digital identities
• Historic business claims
• Relevant business associations
• Connections between individuals and companies
• International business activity
• Information inconsistent with claims made to the client

Our investigators use lawful sources and do not unlawfully access private accounts, communications or devices.

Business Partner Due Diligence vs a Standard Company Check

A standard company search can be useful, but it is not the same as an investigator-led due diligence investigation.

Company records generally show information that has officially been registered.

Investigative due diligence examines the wider picture: the people, history, relationships, inconsistencies and potential risks behind the company.

An investigation may identify:

• Connections between apparently unrelated companies
• Previous business ventures
• Undisclosed commercial interests
• Historic directorships
• Patterns involving dissolved businesses
• Conflicting professional claims
• Adverse media
• International connections
• Relationships that may create conflicts of interest
• Information requiring deeper investigation

This additional context can be particularly important where a transaction involves substantial money, reputation, intellectual property, ownership or access to sensitive commercial information.

Warning Signs That May Require Enhanced Due Diligence

Some clients commission due diligence simply because it is sensible commercial risk management.

Others contact us because something has already caused concern.

Potential warning signs can include:

• Reluctance to provide basic business information
• Inconsistencies in professional or business history
• Claims that are difficult to independently verify
• Repeated changes of company
• Multiple dissolved companies
• Complex or unexplained corporate structures
• Pressure to invest quickly
• Requests for substantial upfront payments
• Unclear explanations concerning investment capital
• Unexplained international connections
• Conflicting information concerning previous businesses
• Undisclosed relationships with suppliers or competitors
• Significant adverse media
• Resistance to reasonable due diligence

None of these indicators alone proves dishonesty or wrongdoing.

They may, however, justify deeper investigation before proceeding with a significant commercial relationship.

Due Diligence Before Investing in a Business

Investing in a business involves more than examining financial projections and accounts.

The people controlling the business can be just as important as the numbers.

Pre-investment due diligence can help establish relevant information concerning founders, directors, shareholders and other key individuals before capital is committed.

Investigative enquiries can potentially identify corporate history, undisclosed business connections, adverse information and inconsistencies that may be relevant to an investment decision.

For higher-value investments, enquiries can be expanded into an Enhanced Due Diligence or Pre-Investment Intelligence Investigation.

Investigative intelligence can complement the financial, legal and accounting due diligence undertaken by your professional advisers.

Due Diligence Before a Joint Venture

A joint venture can expose both parties to significant financial and reputational risk.

Partners may share capital, customers, intellectual property, commercially sensitive information, resources and reputation.

Independent due diligence can help establish whether information provided by a proposed joint-venture partner is consistent with independently available evidence.

This can be particularly valuable where the relationship is new, international or involves substantial financial exposure.

Director & Executive Due Diligence

Senior appointments can provide individuals with substantial access to company finances, employees, confidential information and strategic decision-making.

Enhanced director and executive due diligence can examine relevant professional history, directorships, business interests, corporate connections, adverse information and other matters appropriate to the instruction.

Where a more detailed investigation is required, Are They Safe can provide a separately scoped Director & Executive Due Diligence Investigation.

Investor Due Diligence

Due diligence should not only be conducted by investors.

A company considering accepting substantial investment may also want to understand who is providing the capital and what commercial interests or relationships surround that individual or organisation.

Investor due diligence can help establish relevant business history, companies, directorships, reputation and commercial connections before a significant investor becomes involved in the organisation.

Supplier & Counterparty Due Diligence

Commercial risk does not only arise from business partners and investors.

Companies can also become exposed through suppliers, contractors, distributors, agents and other counterparties.

Due diligence may be appropriate before entering a strategically important supplier relationship, particularly where the organisation will receive substantial payments, have access to sensitive information or become an important part of your supply chain.

Investigative enquiries can help establish relevant company history, directors, corporate connections and potential risk indicators.

International Business Partner Due Diligence

International business relationships can create additional investigative challenges.

Corporate records may differ significantly between jurisdictions, individuals may use different variations of their names and important information may exist outside the UK.

Are They Safe can consider international due diligence enquiries involving overseas business partners, directors, investors and companies.

Depending upon the jurisdiction and lawful information available, international enquiries may include:

• Overseas corporate research
• Director and company connections
• International adverse-media research
• Business ownership research where information is lawfully available
• Professional history
• Relevant reputation enquiries
• Verification of business claims
• Identification of international corporate relationships

The availability and depth of information varies between jurisdictions and will be considered when the investigation is scoped.

Enhanced Due Diligence for High-Value Transactions

The greater the potential financial or reputational exposure, the more important it can be to understand the individuals and businesses behind a transaction.

Enhanced due diligence may be appropriate for:

• High-value investments
• Major commercial partnerships
• International transactions
• Joint ventures
• Business acquisitions
• Strategic suppliers
• Significant investors
• Senior executive appointments
• Transactions involving complex corporate structures

An Enhanced Due Diligence investigation can go beyond standard checks by examining wider corporate history, connections, reputation, relevant disputes, international interests and other identified areas of commercial risk.

The investigation can be scoped according to the transaction value, jurisdictions involved and areas of concern.

Pre-Acquisition Intelligence

Before acquiring a company, conventional legal, accounting and financial due diligence is essential.

However, there can also be considerable value in independently examining the people, relationships, reputation and corporate history behind the acquisition target.

Pre-acquisition intelligence can complement conventional professional due diligence by examining relevant directors, corporate interests, business connections, adverse information and other legitimate risk indicators.

It can be particularly useful where a buyer wants to understand the wider background behind the figures contained within conventional transaction documents.

For significant transactions, Are They Safe can provide a separately scoped Pre-Acquisition Intelligence Investigation.

Our Business Partner Due Diligence Process

We recommend a staged approach so that the depth and cost of the investigation reflects the value and risk of the proposed relationship.

Stage 1 – Business Partner Risk Review

The first stage establishes who needs to be investigated, the nature of the proposed relationship and the commercial decision the intelligence needs to support.

Depending upon the instruction, the initial review may include:

• Review of information supplied by the client
• Identity and background assessment
• Initial company research
• Directorship history
• Corporate connections research
• Open-source intelligence
• Initial adverse-media research
• Identification of inconsistencies
• Identification of information gaps
• Assessment of areas requiring deeper investigation

This provides an initial intelligence picture and helps determine whether enhanced enquiries are warranted.

Stage 2 – Enhanced Due Diligence Investigation

Where the initial review identifies areas requiring further investigation, or the value and complexity of the proposed transaction justifies deeper enquiries, the investigation can be expanded.

This may include:

• Detailed corporate intelligence
• Historic business connections
• Associated companies and individuals
• Enhanced adverse-media research
• Professional history verification
• Relevant litigation and dispute research
• Deeper OSINT investigation
• International enquiries
• Other lawful enquiries relevant to the identified risk

Stage 3 – Due Diligence Intelligence Report

Relevant findings can be presented within a structured professional due diligence report.

The report is designed to distinguish between verified information, relevant intelligence, inconsistencies and matters that may warrant further consideration.

What Will a Business Partner Due Diligence Report Tell Me?

The precise contents of a report depend upon the agreed scope of the investigation.

A report may include:

• Subject and company identification
• Personal Background information
• Relevant corporate history
• Current and previous directorships
• Associated companies
• Professional background
• Relevant adverse-media findings
• Identified corporate connections
• International connections where investigated
• Relevant inconsistencies
• Areas that could not be independently verified
• Information that may warrant further investigation

The purpose of the report is to provide a clear intelligence picture rather than overwhelm the client with raw data.

Confidential & Independent Corporate Intelligence

Business partner investigations can involve highly commercially sensitive information.

Are They Safe conducts due diligence enquiries discreetly and within an agreed investigative scope.

We do not begin an investigation with the assumption that the subject has done anything wrong.

Our purpose is to independently establish relevant facts, identify legitimate risk indicators and provide intelligence that supports informed commercial decision-making.

Business Partner Due Diligence for Solicitors & Professional Advisers

Are They Safe can accept appropriate instructions from solicitors, accountants, corporate advisers and other professionals requiring independent investigative support for a client or commercial transaction.

Investigative objectives can be agreed at the outset and enquiries scoped according to the commercial exposure and identified areas of risk.

Our intelligence is designed to complement, rather than replace, appropriate legal, accounting, financial, regulatory or tax due diligence.

Business Partner Due Diligence for SMEs

Due diligence is not only for multinational corporations and major acquisitions.

For an owner-managed or small business, choosing the wrong partner can have an enormous impact because a new partner may gain access to company finances, customers, intellectual property and commercially sensitive information.

A comparatively modest transaction can represent a significant proportion of an SME’s assets or working capital.

Are They Safe can provide proportionate due diligence for SMEs that require independent intelligence without commissioning an unnecessarily complex corporate investigation.

UK & International Business Partner Investigations

Are They Safe provides Business Partner Due Diligence and corporate intelligence services throughout the UK.

International enquiries can also be considered where a potential partner, director, investor or company has overseas business interests or connections.

Investigations can therefore be scoped around the actual geography, transaction value and commercial risk of the proposed relationship.

Why Use an Independent Investigator for Business Due Diligence?

Information supplied by a potential business partner tells you what they have chosen to disclose.

Independent due diligence provides another perspective.

Our private investigators examine relevant information from lawful independent sources and look for connections, inconsistencies and risk indicators that may not be immediately apparent from company documents alone.

This can be particularly important where substantial money, company ownership, intellectual property, confidential information or reputation is at stake.

Our approach is built around three principles:

Verify the information. Identify the risks. Help you make an informed decision.

Business Partner Due Diligence FAQs

Can I investigate someone before going into business with them?

Yes. Where there is a legitimate commercial purpose, lawful due diligence can be undertaken before entering a business partnership, investment, joint venture or other significant commercial relationship.

What can a business partner background check reveal?

Depending upon the agreed scope and lawful information available, an investigation may identify relevant company history, directorships, business interests, corporate connections, adverse media, professional history, previous ventures and other information relevant to assessing commercial risk.

Can you check a company director’s background?

Yes. Director due diligence can examine relevant current and historic directorships, associated companies, business interests, professional claims, adverse information and other appropriate areas.

Can you investigate a potential investor?

Yes. Where a company is considering accepting significant investment, appropriate due diligence can help establish relevant information concerning the proposed investor and their commercial background.

Can you investigate someone before I invest in their business?

Yes. Pre-investment due diligence can examine the backgrounds and business histories of founders, directors and other key individuals before significant capital is committed.

Can you investigate an overseas business partner?

Yes, depending upon the jurisdiction and information available. International due diligence can be scoped according to the countries involved and the specific commercial risks requiring investigation.

Can you identify undisclosed companies or business interests?

Investigative corporate research may identify relevant companies, directorships and business connections available through lawful sources. What can be established will depend upon the jurisdiction, circumstances and information available.

Can you investigate a potential joint-venture partner?

Yes. Due diligence can be undertaken before entering a joint venture to examine relevant information concerning the proposed partner, its directors, corporate history and other legitimate commercial risk indicators.

Can you investigate a supplier or contractor?

Yes. Supplier and counterparty due diligence can help establish relevant information concerning a company, its directors, corporate history and other identified areas of commercial risk.

Is Business Partner Due Diligence confidential?

Yes. Corporate intelligence instructions are handled confidentially and investigative enquiries are planned according to the circumstances, lawful basis and agreed scope.

Is this the same as financial due diligence?

No. Investigative due diligence primarily focuses on the people, companies, connections, history and potential risk indicators surrounding a commercial relationship.

It can complement financial, legal and accounting due diligence undertaken by appropriately qualified professional advisers.

When should I conduct Business Partner Due Diligence?

Ideally, due diligence should be considered before significant contracts are signed, investments are made, shares are transferred or commercially sensitive information is disclosed.

How long does a Business Partner Due Diligence investigation take?

The timescale depends upon the depth of investigation, number of individuals and companies involved, jurisdictions requiring research and complexity of the corporate structure.

The proposed scope and likely timescale can be discussed before the investigation begins.

Do you provide Enhanced Due Diligence?

Yes. Where a transaction or relationship presents greater financial, reputational, corporate or international risk, enquiries can be expanded into an Enhanced Due Diligence investigation.

Can you carry out due diligence before a company acquisition?

Yes. Pre-acquisition intelligence can complement conventional legal, financial and accounting due diligence by examining the people, corporate connections, reputation and other relevant intelligence surrounding an acquisition target.

Know Who You Are Doing Business With

A business opportunity can look excellent on paper. But before committing significant money, assets, company ownership, confidential information or reputation, it can be worth independently establishing who is behind it.

Whether you are considering a new business partner, investor, joint venture, acquisition, strategic supplier or significant international commercial relationship, Are They Safe can provide independent corporate intelligence to help you understand the people and businesses involved.

Contact Are They Safe Private Investigations for a confidential discussion about Business Partner Due Diligence.