Due diligence involves investigating a corporation to assure potential buyers or investors that it is sound. This work is carried out by legal teams, investigators, analysts, and attorneys who review financial records, employees, history, legal status, and other categories. A bachelor’s degree in Business Management, Marketing, Finance, or Accounting is usually required.
Each type of due diligence work is typically concerned with investigating a corporation. By definition, due diligence is the act of assuring a potential buyer or investor that the company is sound, has adequate funding, and has a loyal customer base. Finance, law, and engineering are all areas that offer due diligence work.
When the chief executive officer (CEO) of a company wants to merge or buy another company, he usually hires a legal team that specializes in due diligence issues. In addition, each company is likely to employ a due diligence team comprised of investigators who review the company’s financial records, employees, history, legal status, and other categories as necessary. Investigators typically look at the bank records, domestic and foreign companies, assets, liabilities, and solidarity of the company being investigated.
Another branch of due diligence jobs is the due diligence analyst. An analyst may be responsible for the investigation or may receive and analyze information provided by an investigator. Sometimes a company has a pre-approved checklist for the investigator and analyst to help in evaluating a potential merger company. This evaluation list usually includes areas such as employee reliability, whether the company’s reputation is registered in the state where the company is located, and whether there have been difficult periods for the company. The analyst usually analyzes this information and forms an overall snapshot of the company which is then presented to the CEO.
A due diligence attorney is another branch of due diligence work. This is usually the person responsible for knowing corporate law and the due diligence process. He usually ensures that all legalities are covered and that all paperwork is submitted to the correct government departments.
To find work in the field of due diligence, a person could find employment at a financial firm as an analyst, with only experience in real estate and low-income housing taxes. Most companies, however, require at least a bachelor’s degree in Business Management for all due diligence work. Other degrees that may qualify include Marketing, Finance and Accounting. Some agencies require their due diligence analysts to be certified public accountants (CPA).
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