In business, we often cannot control who moves into the unit next door. However, when it comes to professional associations, whether new suppliers, consultants, contractors, or partners, we can and must be proactive. One of the most important safeguards you have is due diligence: the act of thoroughly checking the backgrounds of those you intend to work with.
Fail to do this, and you may risk more than just an awkward situation, you could jeopardise your contracts, reputation, and even your ability to operate.
If you deal with sensitive industries such as government departments, defence, finance, healthcare, education, or critical infrastructure your own reputation is constantly under scrutiny. It only takes one questionable association to put compliance, eligibility for public sector work, or high-value contracts at serious risk. Even in less regulated sectors, aligning your business with disreputable figures can destroy customer trust, undermine staff morale, and make future expansion nearly impossible. Due diligence is not about cynicism. It is about intelligent risk management.
Here are some examples I have come across:
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Government Contracts: A subcontractor on a government project was later found to have multiple dissolved companies with outstanding debts. The main contractor, who had failed to vet them, was blacklisted from future tender opportunities.
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Professional Services: An IT firm brought in a consultant who had a history of professional misconduct (one of their managers described him as a “good chap”). Their insurance premiums soared after a data breach incident was linked to that individual’s poor practices and that was before the ICO made its adjudication…
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Safeguarding Concerns: A private tutoring agency faced public outrage when it was revealed that a self-employed contractor working for them had a prior conviction for sexual offences against minors, a fact that could have been easily discovered through proper criminal background screening.
Over the past few weeks, I have seen several reports where people from educational establishments have been found to be in the possession of Child Sexual Abuse Material (CSAM).
Each of these cases had one common thread: the warning signs were there for anyone who had taken the time to look properly or even paid attention to the receptionist who said that the newbie “gave her the creeps”.
Here are essential steps you should follow before engaging with anyone in a professional capacity, especially those who are self-employed or operating as a limited company:
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Companies House Checks:
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Search the individual’s name and any companies they claim to be associated with.
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Look at the company’s filing history. Patterns of companies being dissolved, struck off, or persistent overdue accounts are major red flags.
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Pay close attention to discrepancies: if someone claims years of directorships but there’s no visible record, or they set up new companies without associating them with prior ventures, proceed with extreme caution.
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LinkedIn and Public Profiles:
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Cross-reference LinkedIn profiles with official Companies House entries.
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Look for inconsistencies in dates, roles, and company names. Fabrications and exaggerations are surprisingly common — and revealing.
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References and Reputation:
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Ask for and check references, particularly from former clients or partners.
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Do not rely solely on references provided by the individual themselves; seek out independent confirmation wherever possible.
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CBA (Credit, Bankruptcy, and Adverse History) Checks:
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For relationships involving financial risk, commission a CBA check.
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This can uncover credit issues, bankruptcy filings, County Court Judgments (CCJs), director disqualifications, or involvement in previous fraud investigations.
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Criminal Background Checks:
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Where appropriate — especially in roles involving financial control, vulnerable groups, or reputational risk — conduct a criminal background check.
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Check for convictions, including offences such as fraud, theft, violence, or sexual offences.
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In sectors involving minors, vulnerable adults, education, or healthcare, an enhanced disclosure (such as a DBS check in the UK) should be mandatory.
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If someone has convictions relating to safeguarding issues (e.g., child sexual offences), allowing them into your professional network, even unknowingly, could have catastrophic consequences, both morally and legally.
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Financial and Legal History Checks (Where Applicable):
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Particularly important for partnerships or key supply chain vendors.
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Ensure there are no hidden court actions, insolvencies, or enforcement actions pending.
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It is important to recognise that not all past failures are cause for immediate concern. Many honest, capable business people have endured bankruptcies, economic downturns, or projects that simply didn’t work out, However, deliberate misrepresentation is different.
If an individual has made false statements to Companies House, whether by hiding associations with previous companies, falsifying directorships, or failing to report significant changes, this shows a clear willingness to breach legal obligations. If someone is prepared to lie to a statutory body, ask yourself: what might they do to you, your clients, or your investors?
In today’s interconnected world, where news travels fast and compliance regulations tighten every year, you cannot afford to take people at their word. Due diligence isn’t about being distrustful; it’s about protecting not only everything you have built, but the future.
A simple investment of time, checking public records, verifying claims, conducting CBA and criminal background checks can save years of heartache, financial damage, and lost opportunity. When it comes to choosing the people you associate with in business, be thorough, be smart, and never apologise for asking the hard questions. And never ignore someone saying “he gives me the creeps”, even if it’s Trisha on reception.
Need any help? Do reach out to us.
Photo by Kevin Ku
