At 221B Partners, we see pre-transaction due diligence for investors as an invaluable and irreplaceable exercise. In our experience, skipping it -because buyers know, have met the management team and “have a sense” of them – or treating it as a perfunctory afterthought unlikely to yield or uncover new and important information and facts is dangerous. It unnecessarily discounts a potential risk which can be mitigated at marginal expense.

A well-scoped and thoughtful due diligence can help keep investors from scoring an own goal through acquiring personnel and assets other than they expected. Clients have brought to us CFO candidates for whom we’ve identified multiple personal bankruptcy filings, business owners and CEOs with documented histories of domestic violence, harassment and, in one case, murder. Proactively identifying potential issues before committing to an investment and new professional relationship can help drastically minimize risk, time, and costs down the line.

We combine decades of experience conducting complex due diligence investigations, along with industry standards and best practices, to present our clients with clear findings to help them make confident and sound business decisions. In our experience, due diligence is not just the province of investment funds and private equity. Family offices, businesses, and even interested individuals retain us to help them assess the worthiness of potential hires, partners and other strategic resources.

Our Role Before You Commit

How do we find this information? We leverage our deep knowledge of public records, databases, and online sources; interviewing expertise; and ability to piece together complex information. 221B searches for and focuses on what matters most to our clients before they enter a relationship, including:

• Allegations of wrongdoing in personal or professional life

• Workplace temperament, reputation and leadership/management style

• Undisclosed business affiliations; conflicts of interest

• Financial wherewithal risks and concerns

• Compliance and regulatory issues, watchlists, and sanctions

• Adverse press and social media activity

• Inconsistencies in employment and educational backgrounds

• Verification and integrity of professional licenses and registrations

• Political activity and contributions

Our aim is to always provide our clients with a high quality and cost-effective approach to due diligence that allows them to determine the best path forward.