Vendor/Strategic Partner Due Diligence

Vendor Strategic Partner Due diligence

When awarding a contract to a key vendor or affiliating with a strategic partner, the personalities behind the corporate entities make all the difference.

How the leaders in an organization have conducted their personal or business affairs in the past are strong indicators of how they may behave in the future.
Avoiding liability and litigation are key objectives in due diligence efforts. This includes understanding the behavior of both the partner organization and its principals.

Firms are wisely concerned about past behavior that suggests increased risk of fraud, mismanagement, conflict of interest, or other bad behavior.
Because each use case is unique, Imperative provides clients the ability to define each due diligence investigation to meet their specific needs.

Typical due diligence investigations on key vendors or strategic partners might include the following components.

Background Investigations on Owners, Directors, and Key Employees

• Identity research to corroborate the personally-identifiable information of the individual.

• Criminal history research to ensure that past alleged criminal acts are understood in the proper context.

• Civil litigation research to understand past instances where the individual has been sued or has brought suit against others.

• Bankruptcy research to determine if the individual has filed bankruptcy in the past and, if so, the nature of their debt and the outcome of the filing.

• Searches for lien and judgment filings resulting from civil litigation matters, government actions, or unpaid debts.

• Secretary of State research to identify corporate entities for which the individual has been listed as an officer or director. The circumstances surrounding those entities may identify possible conflicts of interest or involuntarily dissolved entities.

Background Investigations on Corporate Entities

• Verification of the entity’s standing with the state and identification of its officers, directors, partners, or related entities.

• Civil litigation research to understand past instances where the entity has been sued or has brought suit against others.

• Bankruptcy research to determine if the entity has filed bankruptcy in the past and, if so, the nature of its debt and the outcome of the filing.

• Searches for lien and judgment filings resulting from civil litigation matters, government actions, or unpaid debts.