Due Diligence Services USA

A company may be properly registered, professionally presented and represented by experienced executives while still presenting risks that are not immediately apparent.

Conflict International USA provides due diligence and corporate intelligence services for US corporations, investors, private equity firms, family offices, law firms and professional advisors.

Our work can help clients verify material representations, understand ownership and control, assess key principals and identify information that may influence an investment or commercial decision.

Due diligence does not certify that a transaction is safe.

Its purpose is to improve the quality of information available before a decision is made.

Corporate Due Diligence

Corporate due diligence may examine:

• Company formation and history.
• Officers and managers.
• Shareholders or members where identifiable.
• Persons with significant economic or managerial interests.
• Related entities.
• UCC filings.
• Litigation.
• Bankruptcy.
• Regulatory history.
• Credible adverse media.
• Material inconsistencies.

In the US, company and court information is often distributed across federal, state and county sources rather than a single central corporate registry.

That makes understanding where to search as important as running a basic database check.

Investment and Private Equity Due Diligence

Before committing capital, investors may need answers to questions beyond those contained in a pitch deck or management presentation.

These can include:

• Who actually controls the business?
• What other companies are connected to the principals?
• Do management biographies withstand independent verification?
• Have key individuals been involved in significant litigation or bankruptcy?
• Are there regulatory issues?
• Are there undisclosed conflicts of interest?
• Do important commercial representations align with independent information?

Independent corporate intelligence can complement financial, tax and legal due diligence performed by the client's other advisors.

Integrity Due Diligence on Key Principals

A company's risk profile can be closely connected to the people behind it.

Research may examine:

• Executive history.
• Corporate appointments.
• Business affiliations.
• Litigation.
• Bankruptcy.
• Regulatory findings.
• Sanctions.
• Relevant adverse media.
• Potential conflicts.
• Undisclosed commercial relationships.

Negative information should always be assessed in context.

An allegation is not a finding. A lawsuit is not proof of misconduct. A failed company does not automatically indicate dishonesty.

Third-Party Due Diligence

Agents, distributors, suppliers, consultants and intermediaries can create legal, financial and reputational exposure.

Third-party due diligence may examine:

• Ownership.
• Key principals.
• Corporate history.
• Sanctions exposure.
• Regulatory issues.
• Litigation.
• Political exposure.
• Adverse media.
• Conflicts of interest.

For cross-border relationships, research can extend into relevant overseas jurisdictions through the wider Conflict International network.

Enhanced Due Diligence

Some relationships justify deeper scrutiny.

Enhanced due diligence may be appropriate where there are:

• Complex corporate structures.
• Higher-risk jurisdictions.
• Politically exposed persons.
• Sanctions concerns.
• Unclear ownership.
• Significant adverse information.
• Source-of-wealth concerns.
• Major discrepancies in supplied information.

Enhanced due diligence should investigate the identified risk rather than simply produce a longer report.

Due Diligence for Legal Matters

Attorneys may also require corporate intelligence concerning an opposing party, key principal or relevant business.

Where that work forms part of active or anticipated litigation, our Litigation Support Services may provide the more appropriate framework.

Due Diligence vs. Asset Tracing

Due diligence generally asks:

Who are we dealing with, and what risk should we understand before proceeding?

Asset tracing asks:

What assets, financial interests or ownership connections can be identified?

Where identifying assets is the primary objective, our Asset Tracing Services should remain the primary service.

Our Approach

Conflict International USA defines the client's decision, identifies the most relevant risk areas, researches the companies and principals involved, analyzes relationships and reports what can and cannot be independently established.

Legal, regulatory and investment decisions remain with the client and its appropriate advisors.

Make Important Decisions With Better Information

If you are considering an acquisition, investment, partnership, major third-party relationship or other high-value transaction in the United States or internationally, contact Conflict International USA to discuss an appropriate due diligence scope.