Oleg Didych
Expert in organising surveillance and performing tasks of increased complexity, President of the NGO ‘Association of Veterans of the Security Service of Ukraine “Seven”, Lieutenant Colonel of the reserve special services, Director of the Service seven Consulting Agency (detective services, business security), Head of the Control kids project.
Are you familiar with Due Diligence?
    New terminology has long been firmly established in the everyday practice of organising a successful business, and continues to be introduced.
    At INTERNATIONAL BUSINESS PROTECTION HOLDING, the term Due Diligence is considered to be a set of measures to conduct examinations by independent experts in order to provide the customer with objective information about the investment object or the proposed transaction (for example, the purchase of an object).

Very often, due diligence is interpreted as a legal audit conducted at a potential investment target with the addition of a review of the financial, organisational and tax status of business processes. In our opinion, the practical essence of this process is much broader, unless the Due Diligence contractor plans to mislead the customer.
    As early as 1933, after the adoption of the Federal Securities Act in the United States, experts began to interpret Due Diligence as investigations and examinations of potential investment projects. In other words, it is probably more honest to perceive and offer Due Diligence as a set of activities conducted using private investigation techniques and providing the customer with a generalised report on the real underlying state of the potential investment object and practical (fact-based) recommendations on all aspects of the due diligence, namely

• COMPREHENSIVE ANALYSIS OF THE PROTECTION OF ALL BUSINESS PROCESSES
• ANALYSIS OF THE EFFECTIVENESS AND TRANSPARENCY OF FINANCIAL AND ACCOUNTING RECORDS
• ANALYSIS OF THE TAX POSITION OF THE BUSINESS
• ANALYSIS OF THE COMPANY'S OPERATING SYSTEM
• LEGAL EXPERTISE OF BUSINESS PROCESSES
• ANALYSIS OF THE AGGRESSIVENESS OF THE COMPETITIVE, REGULATORY AND CRIMINAL ENVIRONMENT

As a result of this complex, the customer of Due Diligence should receive complete information about the potential investment (purchase, study) object, namely

1. Data on the company's capitalisation;
2. Data on revenues, profits and prospects for increasing (decreasing) profitability;
3. Information on the competitive, criminal and regulatory environment;
4. Assessment of the real state of the facility's security system and personnel policy;
5. Data on hazards and risks of ownership management;
6. Data on financial and tax risks, proposals on ways to optimise them;
7. Information on optimisation of business processes and compliance control in the company;
8. Recommendations on planning and development prospects of the investee;
9. Other information that provides complete answers to the client's current questions.

The issues under study can be investigated in a wider range, but always require the mandatory participation of specialists - practitioners in the fields of business intelligence and corporate business counterintelligence. In all other cases, the customer of Due Diligence runs the risk of receiving incomplete or even falsified information based on the results of the inspection.