Asset investigations are used to reveal the financial profile of an individual or business. These types of investigations are beneficial when used to determine the financial stability of a potential partner, vendor or executive. This is also known as a due diligence investigation.
Asset investigations are also used by businesses to research the viability of entering existing or emerging markets. Prior knowledge of established operations, product lines and supply chains can provide valuable insight when making business decisions to create or maintain competitive advantage.
When the potential for legal action exists, businesses will conduct due diligence investigation to determine the ability of the party to pay if the law suit is successful. Asset investigations are frequently used to assist in the collection of small claims judgments and determine the validity of a declared bankruptcy when suspected assets may have been hidden.
Human resource departments frequently conduct asset investigations as part of pre-employment screening on potential management or executive candidates. In cases where employee theft or fraud is suspected asset investigations can determine if the person is living beyond their pay scale. This type of red flag behavior can prompt or in depth accounting of the persons activities.