Corporate Due Diligence Elements
Corporate due diligence should include the following areas in order to ensure a complete risk assessment:
1. Legal Compliance and Regulatory Status
Verify if the company is legally registered and abides by the national and international laws, licenses, permits, and industry-specific rules.
2. Corporate Structure and Ownership
Determine the complete structure of ownership, including  Ultimate Beneficial Owners (UBOs). This helps to reveal connections to politically exposed persons (PEPs), sanctioned individuals, or shell companies.
3. Financial Health
Examine audited financial statements, debts, liabilities and tax records. Financial due diligence is useful in determining the sustainability and profitability of the company.
4. Intellectual Property and Technology Rights
In AI and tech industries, ensure that the firm owns its software, patents, trademarks, or licenses. Seek out pending IP disputes or unregistered codes.
5. Data Privacy and Security
