Pre-Transaction Due Diligence

September 09, 2024

by a searcher from Arizona State University, Tempe Campus in Chandler, AZ, USA

In January, I started EPIC (Roland Frasier's M&A mastermind) and decided to focus my search to Private Investigation companies since I've been licensed since###-###-#### I am happy to say that I acquired a small 33 year old firm in Connecticut last month. The transition went well and I am able to manage it remotely.

I would love this group's advice on a service I want to expand - Have you ever hired an investigator to dig up red flags on the company / owners or management before you make an investment? The previous owner did not market to investors - I feel there's an opportunity here so I am starting my research. I am excited to hear about your experiences!

Reply by a professional
from University of Virginia in Charlottesville, VA, USA

I own a SaaS business that's totally focused on background checks for private market deals. We cross-reference multiple databases looking for employment, legal issues, bankruptcy, and criminal records. Single report is $67 and you can get it in minutes with just name, email, and city. https://www.usetract.com/Risk-Investigation

We also offer much more in-depth reports conducted by former military intelligence professionals.

Reply by a searcher
from The University of Chicago in Santa Cruz, CA, USA

I found a PI firm owner willing to sell here in CA. My impression was that the buyers (insurance) don't have clear quality standards and jobs go to low bidder or relationship, and jobs pay on hours not outcomes. The business owner felt strongly he needed to keep his quality up, and was not very profitable.

I am a pretty decent amateur online researcher (stalker?) and have found some astonishing things about sellers, e.g., former lawsuits for investor fraud. I'm not sure I would pay for it, but maybe not sure what I am missing.

+10 more replies.

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