Here are some of the services undertaken by a private investigator:

• Conduct a search for any litigation history. Prior lawsuits against the company can tell you a great deal
  about what’s really going on. 

• Conduct a search for other businesses owned or controlled by the selling parties. Far too many people have the entrepreneurial spirit and would sell you their business…. only to have a similar business or interest that may end up competing against you. 

• Check public records, licensing and governmental filings for completeness and accuracy. Are there prior bankruptcies? Were licenses ever revoked? In others names? Never filed? etc.

• Verify the receivables are valid and with unrelated parties. Who really owes them money and do they
  acknowledge the debt and agree to it.

• Interview employees and vendors about the health of the business. These people know what’s really going on. They know about the business and managements reputations. They know if business is really down 30%, if a major client is unhappy with them, if their habits have changed, if any employees have been laid off or let go recently, if they have bad leadership, etc.

• When the stakes are high enough, we have also conducted limited surveillance of the business, owners and key employees to see what they are actually doing, if inventory is moving, if things are being puffed up to look good for the potential buyer visits, etc.
  

A private detective specializing in this type of work can obtain the information you need to make an informed decision about your prospective purchase quicker and more cost effectively than an accountant or attorney.