Corporate Background Check

As an independent research firm, Investment Checkers provides third-party business validation reports to privately held companies seeking debt or equity investments from angel investors, venture capital or private equity firms. Our efficient investment readiness examination distils findings across ten assessment criteria covering company origins, leadership repute, operating structure, risk management, corporate governance, financial health and legal standing. 

This allows private capital seekers to furnish prospective funding sources with a reputable two-page overview report that succinctly conveys operational soundness, transparency and governance prudence about the underlying enterprise. In essence, we help privately held firms to easily demonstrate baseline credence to potential investors upfront before more exhaustive due diligence is carried out, or final capital allocation decisions are made. 

Our investment readiness reports offer an independent perspective that company-provided data alone cannot fully provide. The insights aim to give prospective financing partners added confidence that management teams exhibit preparedness, integrity and duty of care over stakeholders’ interests.  By enlisting Investment Checkers’ validation offerings, capital-seeking entities can differentiate themselves as corporately compliant, financially responsible and dutifully managed in the eyes of prospective funding sources before delivering full- scale investment memorandums or embarking on extensive investor discussions. 

Company Background Check 

We thoroughly examine the company's origins and evolution, including when it was incorporated, key events in its history; shareholder changes over time, corporate documentation such as Articles of Association that outline governance, as well as any mergers, acquisitions, leadership changes, or new business, focuses. This in-depth understanding of how the business was founded and its important milestones establishes greater trust and credibility in the eyes of potential investors. 

Company Board Constitution 

Considerable attention is paid to evaluating the size, experience, diversity, independence and continuity of the Board of Directors to ensure there is adequate talent guiding the company strategically. The specific expertise represented is reviewed across domains, such as industry knowledge, financial, legal, technology, and operating backgrounds. Additionally, the presence of an experienced corporate secretary validates that proper governance practices will be followed. 

Directors & Key Executive Background Checks 

An expansive evaluation encompassing credit checks, criminal record searches, bankruptcies, litigation involvement, and number of other directorships held verifies character, integrity and capability of leadership. Also important is assessing educational credentials, employment histories, media coverage and social media activity, which combined provide confirmability that the management team warrants investor confidence. 

Insurance Cover 

A thorough review of all company insurance policies across different categories of risk ensures there is adequate and appropriate coverage reflective of business exposures. Under- or over-insurance, as well as any unusual policy gaps or exclusions, are specifically highlighted so that investors can understand the safeguards in place to protect assets and shareholder value. 

Service Providers 

Careful examination of key service relationships validates the right subject matter experts advising the company in critical areas like legal, accounting, information technology, marketing, human resources, intellectual property and other operational functions. The professional credentials, industry experience, company tenure and track record of performance consultants provide insights into the robustness of the company's support infrastructure. 

External Advisers 

Similar to the evaluation of service providers, the independence, experience, reputation, specialisations and contractual arrangements of other external advisors receive considerable scrutiny to substantiate that expert guidance on strategic, financial, regulatory, commercial and transactional matters will serve the best interests of investors and shareholders alike. 

Corporate Governance 

A comprehensive appraisal of all facets of company governance evaluates adherence to regulations, tax compliance, filing completeness, requisite licensing, operating policies & procedures, board & shareholder meeting protocols, dispute resolution mechanisms and director liabilities. The examination also includes internal controls over financial reporting, management assertions about effectiveness, and physical asset security safeguards. Taken together, a review of governance practices signifies operational excellence and risk mitigation. 

Banking Arrangements & Financial Controls 

The foundation for judging the financial stability and credibility of any company starts by conducting a rigorous evaluation of cash management procedures encompassing how operating versus investment funds are segregated across bank accounts, the nature of any banking facilities like overdraft provisions and credit lines, authorisation and approval procedures for all disbursements, expense allocation rules, and frequency of independent reconciliations. Finally, we ensure clear delineation exists between board-sanctioned spending authority limits versus discretion afforded to management to minimise irregularities. 

Capital Adequacy 

Collating and scrutinising current cash reserves, working capital cycles, pending receivables/payables, financial obligations across less than a 12-month horizon, and available credit facilities, as well as near-term forecasts, provide reasonable confidence in validating the sufficiency of operating funds to deliver against business projections that they serve as the basis for capital raising activities. Any questionable assumptions, gaps between plans and funding needs or risks to cash flows are highlighted accordingly. 

Actual or Potential Legal Disputes 

Comprehensive litigation reviews uncover the extent, nature, individuals & jurisdictions involved, potential exposures and preceding events that could shed light on any prior or current legal proceedings involving the company. Findings seek to clarify severity, mitigate risks, avoid surprises, and reassure investors that management has given due consideration even if disputes could not be avoided otherwise.