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Due Diligence Background Checks

Why conduct background checks in Mergers & Acquisitions?

If your organization is acquiring or merging with another company, there are many due diligence tasks that must be completed before the transaction is finalized.  In many organizations, human capital is one of the key reasons for a company’s success but in other organizations human capital can be mismanaged and should be reviewed before moving forward.  Background screening during the M&A Due Diligence phase can help prevent HR issues from being overlooked and having problems with personnel once the merger or acquisition is complete.  In addition, background checking employees give you insight on where the employee stands now not when they were first onboarded which could have been 20+ years ago for some employees.

Screening & Rescreening of Current Employees

If you are acquiring or merging with another business, the current employees may have had a background check done on them when they were hired.  However that may have been more than 10+ years ago for some employees. Some questions to ask is when employees were screened (on initial hire or on a bi-annual basis)? What company completed the screening? Were they FCRA compliant?  What were the particular aspects of the background check?  You can also verify any newly earned degrees, certifications, or credentials for any employees.

A safe and productive workplace is the upmost importance for any organization.  To ensure the safety of your new business and employees, we suggest you complete an all-inclusive background check on any current employees that will be staying after the merger or acquisition is completed.  Diligent Data can help you choose the appropriate  background check package that ensures the highest quality search while being the most cost-effective.

I9 & E-Verify 

During a merger or acquisition, it is imperative to ensure all I-9 documentation on all employees exists and is compliant with current ICE (Immigration and Customs Enforcement) standards.  You are responsible for possible ICE Audit fines if there are errors found because of incorrect paperwork or practices from the old company. An E-Verify and Form I-9 Audit are imperative during a merger or acquisition. Diligent Data can help verify that all employees are eligible to work and have the correct paperwork in place.

Additional Services

Diligent Data can also retrieve current and past organizing documents and corporation records to ensure the Due Diligence phase is moved through quickly and thoroughly.

Some of our retrieval services include:
Certificate of Good Standings
Articles of Incorporation
Assumed Name Searches
Business Filings & Copies
UCC Retrievals
Copies of current or prior Mortgages/ Deeds/ Assignments/ Satisfactions
Copies of Lawsuits, Liens, or Judgments

Our full list of other business services are available here 

What are you waiting for? 

Diligent Data can help choose a package specifically for your M&A.

Contact us today for more information via email at Research@diligentdata.com

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