Business Due Diligence

Employee Background ScreeningThe structure and depth of a business background check is best determined by the purpose of the check and the level of risk.  Below, you'll find a three common needs for business background checks and suggested corresponding screening packages.

Level One: Personal Consumer Protection

A basic business background check doesn’t have to cost an arm and a leg. A “level one” business background check can be performed in the area of $50. If you’ve ever had the misfortune of dealing with a company that you paid money to up front and never received a service, or had to repair a situation caused by bad service, the fee for a basic business background check will feel like the best money you’ve ever spent. As an example, a level one background check best corresponds to the following needs.  You’re in the market to…

  • Hire a contractor.
  • Utilize a dog walking service.
  • Retain a babysitter or nanny through a service.
  • Move grandma into a retirement home.

A "Level One" screening package would generally answer the following questions.

  • Have they been in business for a significant amount of time to have “expertise”?
  • Are they operating under a fictitious or DBA (doing business as)name
  • Are they incorporated or registered with the state?
  • A “Doing Business As” another name?
  • Are there unresolved complaints filed against them with the Better Business Bureau?
  • Have their past clients filed lawsuits against them for breach of contract or any other reasons?
  • Do they utilize criminal background checks on their own employees?

Level Two: Large Personal or Business to Business Transaction

Maybe it’s property, machinery, equipment, vehicles, or even a timeshare. Whatever the case, you (or your company) will be entrusting this business with a large sum of money. A “Level Two” business background check would include the basic research of a “Level One” screening package and also go a few steps further. For example, we would seek to answer the following questions for our “Level Two” business background check:

  • Are they Incorporated or registered with the state?
  • Are they licensed and or Insured?
  • Have they been in business for a significant amount of time to have “expertise”?
  • Are they a DBA “Doing Business As” another name?
  • Possible additional searches on DBA’s discovered
  • Are there unresolved complaints filed against them with the Better Business Bureau?
  • Have their past clients filed lawsuits against them for breach of contract or other reasons?
  • Who are the principals of the company?
  • Have the principals of the company filed for bankruptcy multiple times?
  • Does the owner or principal have litigation against them from prior clients?
  • Does pending litigation, tax liens, or other civil actions put the owner/principal in a financially difficult situation? (You don’t want your money going to pay off other debts instead of paying for materials, labor, etc.)

Level Three: Business to Business Venture

Once your company joins forces with another company for a project, marketing campaign or other venture, their skeletons can potentially become yours. Their reputation can be reflected on you, and sometimes, their legal problems can become your legal problems. A business to business venture is too significant not to invest in a thorough business background check. Once again, building on key parts of the “Level One” and “Level Two” business background checks, important research would include…

  • Are they incorporated or registered with the state?
  • Are they licensed and or Insured, and to what degree?
  • Have they been in business for a significant amount of time to have “expertise”?
  • Are they a DBA “Doing Business As” another name? (Possible additional searches on DBA’s discovered)
  • Are there unresolved complaints filed against them with the Better Business Bureau?
  • Have their past clients or business partners filed lawsuits against them for breach of contract or other reasons?
  • Who are the principals of the company?
  • Have the principals of the company filed for bankruptcy multiple times?
  • Does the owner or principal have litigation against them from prior clients?
  • Does pending litigation or tax liens, suits, or other judgments put the owner/principal in a financially difficult situation? (You don’t want your money going to pay off other debts instead of paying for materials, labor, services etc.)
  • Are the owners or principals involved with other corporations that would pose a conflict of interest?
  • Is this company as prosperous as claimed? (It’s not difficult or terribly expensive to make a professional looking website. What’s behind the website is what really matters.)
  • How long has the website existed?
  • How much traffic does their site receive?
  • Who links to them?
  • How much are they spending to market their website or product online?
  • What’s the reputation of the business online?
  • Who’s talking about them and what’s being said?
  • If no “buzz” is out there, why not?

These basic packages can be modified for use in intellectual property research, business profiling for acquisition, “know your client” regulations in the financial industry and other specific needs. The bottom line is, spending roughly one percent of the “purchase price” or estimated cost of the transaction can save you exponentially over the cost and time of dealing with a irresponsible or deceptive business after the damage has been done.

Send Me Pricing 

"We are happy with the service we receive from Safescreener and appreciate the quick turnaround on questions and background screening results. I am also very appreciative that you were willing to work with me on pricing. Thanks for the good work!! "

-  Debra / HR

"We have used Safescreener for two years now, and do not believe we could have found a better, more thorough, and flexible company. Safescreener has modified anything we have asked and made the whole process very simple. The turn around time is quick, and their employees are polite and responsive. I look to continuing business with Safescreener for many years."

-  Regina / HR
 
 
 
 
 
SafeScreener Newsletter 
Keeping Compliance Simple  
State and Federal laws
New features on SafeScreener

 
For Email Newsletters you can trust