Investigative Due Diligence
Hudson Intelligence conducts pre-deal due diligence to reduce the risk of new investments and acquisitions. We work with investors, law firms and corporate clients. Our investigators verify the material facts of a prospectus or offering – and the background of the people involved – before funds are committed.
Investor & Corporate Due Diligence
Investors are advised to conduct due diligence on potential investment opportunities before making a commitment of capital. We prepare detailed financial dossiers on parties involved in potential deals, so investors can make informed decisions based on confirmed facts and figures – not hunches.
The general objectives of pre-deal investigations are to determine if an investment opportunity is legitimate and viable, and confirm whether the terms, promoters and financial prospects of the deal have been accurately represented.
The specific scope of a pre-investment investigation depends on the nature of the deal and the players involved. It can include the following areas of investigation:
- Verification of Capital, Collateral and Financial Accounts
- Investigation of Registered/Unregistered Offering of Securities
- Professional Profiles of Broker-Dealer and Investment Advisor
- Confirmation of Business Operations and Corporate Legal Status
- Benefit, Pension, Retirement and Profit-Sharing Plans
- Litigation, Bankruptcies, Liens, Judgments
- Real Property – Commercial, Agricultural and Residential
- Fleet Vehicles, Financed Equipment, Aircraft and Other Tangible Assets
- Identification of Corporate Parent, Subsidiaries, and Affiliates
- Review of Securities Filings, Public Offerings and Private Placements
- Credit Profile and Financing Information
Investigations in support of investor decision-making consist of two main areas of investigation: asset verification and background investigation.
Verification of existing assets is necessary to determine if the proposed deal is financially viable. Asset verification also allows an informed assessment as to whether the opportunity and its associated risks have been accurately portrayed in the prospectus and related materials.
Vetting the background of the key people who put together the deal is equally critical. Their track record can be a strong predictor of future performance. It is better to know sooner, not later, whether a potential partner’s history is characterized by criminal charges, fraud claims, investor complaints, insolvency or regulatory enforcement actions.
For M&A transactions and major corporate investments, most of the heavy lifting in pre-deal due diligence is handled by attorneys, accountants and advisors, who must efficiently review large volumes of data and documents delivered through virtual data rooms and clean teams of consultants. Amid a deluge of data, there can be sensitive areas that are not fully addressed, or critical data that has been sanitized, leaving unanswered questions about the finances of the company or its principals that require an independent assessment and discreet investigation.
Consult an Investigator
If you would like to discuss a potential investigation, please complete the form below. You can also speak with an investigator by contacting our offices at 800-580-8755.