Have you locked your ‘Investments’ with ‘Diligence’?
Investigations are always the best way to know the truth and get accurate information. Though you have heard about the investigation in personal matters, apart from all of this there is the existence of ‘Due Diligence.
Due diligence?is defined as an investigation of a potential investment (such as a?stock) or product to confirm all facts. These facts can include such items as reviewing all financial records, past company performance, plus anything else deemed material. For individual investors, doing due diligence on a potential stock investment is voluntary, but recommended. The investments made by individual investors are at utmost risk as they play as a retailer in the stock exchange. There are basically two types of investors:-????
领英推荐
How is ‘Due Diligence’ helpful?????????????????????????????????????????????????????????????????????????????
Due diligence is also a process employed when purchasing another business. The process often helps to establish the assets and liabilities of a company and to determine the revenue stream to weigh the transaction as a risky or safe business deal. Due diligence is also used to determine the potential authenticity of an investment or to buy a particular piece of property. It is helpful in revealing fraudulent or criminal activity. Business partners may have engaged in sabotaging activities. Potential executives may lie about their business experience or education. Due diligence is different in every case. Due diligence may consist of a variety of research into business dealings. This often involves looking through public records of the business to determine if there are potentially any hang-ups or areas of concern. Additionally, due diligence may include looking into the background of potential business partners or vendors. The business’ records may be evaluated to determine its financial health. Interviews of people close to the potential business partner may be conducted. Due diligence ultimately wants to determine that a person is who he or she says and has the credentials claimed by him or her, that a particular person or entity will be able to follow through with any obligations or financial commitments or that a person’s prior activities demonstrate integrity.
What if not opted Due Diligence at the right time?
Businesses that do not conduct due diligence are most probably placing the safety and continuance of their business in peril. A partner, executive or employee may embezzle funds and spend them so that a recovery is not possible. Someone may steal business secrets that put a business’ intellectual property at risk. A bad investment may be made, costing the individual or business thousands or even millions of dollars. So, if desired to keep business running, try to make sure of all the required safety.
Due diligence is proved to have all the evidence that is required to reveal all the fraudulent activities. ? ?