WebSearch University presentation - 9/30/14

1. Hedging Your Bets:
Strategy & sources for online due diligence
Marcy Phelps
Phelps Research, Inc.
mphelps@phelpsresearch.com
Web Search University
September 30, 2014 – Arlington, VA

2. Presentation slides:
slideshare.net/marcyphelps
www.phelpsresearch.com/speaking
Twitter: @marcyphelps
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3. Due diligence – What?
The care a reasonable person should take before entering
into an agreement or a transaction with another party
An investigation of a business or person prior to entering
into an agreement
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4. When?
M & A
Partnerships
Investments
Vendor/supply alliances
Grants
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5. Types of due diligence
Background investigations
Legal
Financial
Operations
IP
Market/competition
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6. Background investigations
The past will help predict future actions
360-degree view
Create a profile of professional/private lives
Good and bad
Know what’s legal/ethical
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7. Online
resources
Privacy
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8. Goals
Confirm all provided information
Uncover any missing information
Reconcile any inconsistencies
Identify red or yellow flags
Analyze and report
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9. ONLINE DUE DILIGENCE
Public records
Open web
Social media
Fee-based sources
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10. Where to start?
Does your subject know they’re being investigated?
US? Non-US?
Get basic info:
Location
Identifiers
Supplied bio
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11. Strategy
Background info
Affiliations
Regulatory/professional licensing
Legal
Media
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12. Background info
Locations
Name variations
Spouse/partner
Found bios
Verify education
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13. Sources – Background info
Google/Bing
Name with school(s), current company
Name and “reports to”
Intelius.com/Veromi.com
LinkedIn
DegreeVerify.com (need DOB)
KnowX.com
LexisNexis/TLO.com/Tracersinfo.com
Credit reports – SkyMinder.com
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14. Affiliations
Companies
Non-profits
Other distractions?
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15. Sources – Affiliations
Secretary of State websites
D & B
LexisNexis public records
Guidestar.com Premium
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16. Regulatory/professional licensing
State licenses
Regulatory agencies
Professional associations
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17. Sources – Regulatory/Licensing
FINRA, NFA, SEC
Wikipedia: List of financial regulatory authorities by country
http://bit.ly/1ooJ8QT
BRBpubs.com – State licensing
AMA, ABA, other national licensing boards
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18. Legal
State civil & criminal
Federal civil, criminal, bankruptcy
Judgments/Liens
UCC filings
Sex offender registries
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19. Sources – Legal
State courts – BRBpubs.com
Federal courts – Pacer.uscourts.gov
Secretary of State websites
BRBpubs.com
LexisNexis public records
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20. Media
News
Current
Old
Local
Multimedia
Social media
Alerts
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21. Sources – Media
Google/Bing
ABYZNewsLinks.com
Industry publications
Nexis, Factiva, Proquest Dialog
Facebook, LinkedIn, Google +, Twitter
Spokeo.com
Zoominfo.com
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22. CAN YOU SPOT THE RED FLAGS?
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23. Red flags
Bankruptcy
Multiple liens
Fraud
Criminal actions
More than 1 SSN
Regulatory disciplinary actions
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24. Yellow flags
Supplied info not matching reality
Lack of experience/job-hopping
Litigation
Lack of people skills
Past business failures
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25. Best practices
Communicate with and listen to client
Know your and your sources’ limitations
Manage client expectations
Document, document, document
Forget the 80/20 rule!
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26. Analysis and
reporting
Summarize
Connect the dots
Possible implications
Next actions?
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27. Thank you!
PhelpsResearch.com/speaking
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