Run an Asset Search BEFORE Forming a Business Partnership

Are you considering opening a business? Are you forming a partnership? Has someone offered to be your investor? If so, it is important to run an asset search before you get too excited and make a bad commitment. Business partnerships, or relationships with investors, are a marriage of sorts. The more you know about the individual(s) beforehand, the better chance you have of making the right choice. The last thing you want to do is have your name, reputation, and/or your own assets tied up with someone who is going to bring you down.

An Asset Search Will Provide the Following Information:

  1. Does the individual have the assets they claim to? They drive a fancy car, they live in a swanky pad....and they might also be upside down and ready to file bankruptcy. Before you link your sound assets and good name with someone else, it's a wise idea to see if they're liquid cash flow is what they say it is. We can look up property titles, automobile and other toy titles, loan records, etc. For an Asset Search, this might be a little trickier as DMV information is run by address, rather than name or social security number. Either way, we can help. This information will help to paint a more accurate portrait for you. In some cases, the property and assets a prospective business partner may claim are theirs, might be held in someone else's name, which doesn't do you much good.
  2. Good Credit/Bad Credit. We all know the plight of the American Consumer and the Downfall of General Credit Health. Even people with a lot of money can have a terrible credit report. But, at the end of the day, a credit history is a direct reflection on a person's financial health, sense of obligation, and respectability. When we pull a credit report on your prospective business partner, you will get a snapshot of how dependable, honest, and ready to make good on their word they really are. If you do decide to go into business with a partner who has bad credit, it's important that you protect your business against your partner's credit woes.
  3. Check Their Business Records. Has the individual been in business before? If so, what is their business history? It would behoove you to make sure they are good at running a business, if you are planning to go into one with them. Our asset search before a business partnership will include a thorough check of Better Business Bureau records and any DBAs, business names, or tax records we can find.

An important part of going into business is doing your due diligence. That includes running a complete and accurate asset search and background check on anyone you are considering as a partner and/or investor. The information we uncover will help you know whether you should sign the dotted line, or fold your documents and start looking for new partnership material.

You know what they say about life vests and oxygen masks: always make sure yours is secure before you help the next guy? The same is true when it comes to business partnerships. Verifying their financial and business health is a crucial step in taking care of your own.

Mike Garroutte, owner of Linked Investigations, has been a Private Investigator in Los Angeles and Orange Counties since 1982. He can provide fast, accurate, and affordable asset searches for both individuals and businesses. Contact Linked Investigations to run an asset search on your future business partner.

Published on: 
April 1, 2013
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