There is a certain halo that people tend to put over the heads of anyone who they can label as being in an executive role. It is a natural human tendency to assume that anyone who has reached the level of an executive is naturally a trustworthy person. That is true of a lot of people in those roles, but it is wrong to assume that everyone who makes it that far can be trusted. The reality is that some make it to the role of executive largely because they have cheated their way to the top.
Private Equity Due Diligence
One of the situations that may call for some executive background checks is when you begin to negotiate with an outside firm regarding a private equity deal. There is likely to come a time when you are working with another party that may want to invest in your business or in some project that your business is taking on. This is great news, but it should be approached with caution.
Every wise business owner or operator wants to make sure that he or she knows what they are doing as it relates to who they are dealing with on a practical level. Another way to put this is that you always want to know who you are getting into bed with on any particular deal that you negotiate. It is common sense and yet so many skip over the background check portion of this part of the deal and thus fail to conduct a proper private equity due diligence investigation.
Hiring New Executives
The amount of power that rests in the hands of executives is enormous, and that means that it is mission critical to hire the right ones. One business that does this work well is a company called Corporate Resolutions. They work to make sure that all executives who are hired are given a proper screening to see if there are any red flags at all on their record.
It is the job of Corporate Resolutions to inform their clients of any potentially damaging information that they find about a potential hire. They do not make a judgement call themselves about what course of action to take after that point. Their role is simply to make sure their client is aware of all of the potential issues that are before them.
A few of the areas that are covered in an executive screening are as follows:
- Verification Of Credentials
- Criminal Background Check
- Civil Litigation (I.E. Divorce Proceedings, Child Custody Battles, Etc.)
- All Known Business Interests
These are incredibly important areas that need to be covered for any business to have a legitimate claim that they can completely feel comfortable that they have done all that they can to learn about their new hire. These multi-layer checks are a terrific way to cover as many bases as possible before bringing someone into the fold who will have access to a lot of important information and have the power to make vital choices.
Time To Merge Or Acquire?
Mergers and acquisitions are incredibly delicate processes. The fact that many businesses need to look into the people that they may be merging with or acquiring is fairly obvious. No one wants to get taken for a ride or be in business with the wrong types of characters. This can be avoided by having some due diligence done before the merger or acquisition moves forward.
Before any ink is spilled on a piece of paper finalizing a deal it is so incredibly important to dig through all of the potential skeletons that are buried out there. A firm that does this work for you is incredibly valuable. They can locate any potential red flags that you need to know about before you place a bid or agree to any final decision.
It is so incredibly important to remember that doing your due diligence does not mean that you are not trusting your counter party on a transaction. It simply means that you are doing your homework to make sure that everything goes as it is supposed to according to the wishes of both parties.
Rest Easier With An Executive Background Check Concluded
You will sleep better knowing that all proper executive checks have been done on any high level project that you have been working on. It will allow you to be completely confident that you are doing the right thing as you move forward.
The cost of hiring one of these companies is completely worthwhile when you consider all of the money that they can potentially save you in the long run. You just never know when some red flags may show up and just how much those potential issues could cost you.