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Investigative Due Diligence

About Us > Investigative Due Diligence

Businesses and financial institutions know how critical it is to conduct comprehensive due diligence prior to a merger, acquisition or strategic investment. But while private equity funds and venture capital firms, for instance, are experts in operational and financial due diligence, they are not always familiar with the best practices when it comes to thoroughly vetting the individuals involved in the deal.

Sapient Investigations, Inc.’s due diligence investigations of investors, executives, and companies are designed to provide our clients with the timely information they need to make the right business decision every time.

Sapient Investigations, Inc. has over a decade of experience working with large banks, Fortune 500 companies and law firms. We have worked on every type of transaction from mergers and acquisitions to initial public offerings and large private equity investments. Sapient Investigations, Inc. understands the nuances of deal making and how businesses with the best information are the ones that prove to be most successful.

Trust the experience and know-how of Sapient Investigations, Inc. to get answers to these pre-acquisition concerns:

  • What is the background and reputation of the individuals involved in the deal?
  • What is the track record of the individuals involved in the deal?
  • What is the background of those individuals who will be managing the business after acquisition?
  • Do the deal partners or prospective board members have any issues in their backgrounds that will later prove embarrassing?
  • Have the deal partners made accurate and complete representations about the business?
  • Do the individuals or companies involved have any undisclosed regulatory compliance issues or environmental liabilities?
  • Do the individuals involved have any hidden interests in the business or with vendors?

Case Summary

In 2006, a major Southern California hedge fund invested $11.5 million with GJB Enterprises, a seemingly well-established wholesale factorer.

In January 2009, GJB Enterprises was revealed to be an elaborate ponzi scheme. If the firm had conducted the proper due diligence, they would have identified that GJB Enterprises did not have the proper licenses with the State of California, was not using an independent audit firm, and was soliciting investors by advertising in the classified section of newspapers, all red flags for fraudulent businesses.