Due Diligence Internet Resources

Below are extremely useful, free websites and Internet search tools that potential investors, investment bankers, and even employees can use to review a business prospect. 

 

Useful Search tools:

Internet searchers should always put two + word names of companies or people in parentheses, such as “John Doe” or “ABC Corp.” in order to secure that exact combination of words instead of every possible John and every possible Doe.  Since common personal and company names, particularly those with initials only, such as ABC Corporation, will yield too many options, a searcher can use a + (plus) sign to connect the name with various logical relationships, such as city, industry, professional association, or year  Try “ABC Corp.” + electronics, or “John Doe” + “Houston” + “CPA”.  

 

Useful websites:

 

*          www.sec.gov              This site is for public companies.  One can search for individuals who might be major stockholders or prior directors or managers, or if a company has been sanctioned, has changed names several times, or is a wholly owned subsidiary. 

 

*          www.irs.gov               Anyone who donates money to a charity or religious organization should see if it is listed with the IRS as a 501C3.  If not, why not?          

 

*          www.nasd.com           This website lists every currently licensed individual and broker-dealer in a very easy, searchable system, including any disciplinary disclosures and prior employers, too. It also lists the code of ethics and rules regarding most types of investment sales.  

 

All three of the above websites have a “wall of shame” section, too.

 

*          www.bbb.com             Visitors can search for companies and charities affiliated with the BBB and for company complaints filed with the BBB, by city.  This site is less useful for financial industry firms and more useful for companies that sell some kind of inventory or other service.

 

*          www.yahoo.com/finance        A number of websites, such as Edgar and Hoovers, require log-in and membership to access information more easily available, for free, through Yahoo.  A visitor can search for press releases, and access public filings and stock price histories.   

 

*          www.google.com        The most highly used search engine if very user friendly. 

Searches reveal information about individuals as varied as book reviews they have written, blogs they have visited and political candidates and charities they have supported. 

 

The websites of counties across the country vary widely in their web-readiness.  Some have committed years and millions of dollars to filing documents electronically for the convenient access of the public.  Harris County, Texas is exemplary.

·                 http://www.cclerk.hctx.net/cccourt.htm  On the Harris County Civil Court website, visitors can search for incorporated and DBA companies, for civil suit dockets according to plaintiff and defendant (and read the outcome) by company and individual names.   

 

·                 www.hcad.org   On the Harris County Appraisal District website, visitors can search for property records, including ownership and tax payments.  An investor might want to assess whether the entrepreneur owns property or is a flight risk if a deal goes sour.  Similarly, an entrepreneur might want to determine if a potential investor owns or rents that mobile home or a mansion.  In both cases, the inquirer can see if tax payments are current.

 

·                 http://www.nasaa.org/QuickLinks/ContactYourRegulator.cfm       All states have a secretary of state website.  Although the customer friendliness varies broadly, these are good sources for checking out any licensed professional, many incorporated companies, and other useful information about white collar crime prevention.

 

·                 www.bizjournals.com            This website enables visitors to search through city business journals from Albany to Wichita, which may have articles about an entrepreneur or investor active in that city.