Due Diligence Consulting

How many times have you heard about someone who was swindled out of money by a smooth-talking promoter? Odds are, that person did not conduct the proper Due Diligence before committing their money. Mr. Sapourn’s business experience includes the 23 years he spent as an insurance agency executive. From 1997 through 2004 he was also the CEO of a Registered Investment Advisor (RIA) running a group of domestic and foreign hedge funds which produced positive annualized returns in every calendar year during that tumultuous market period. He currently runs a real-estate investment and development enterprise in Florida.

Through those experiences he has learned how critical it is to conduct Due Diligence before committing time and money to a new business relationship.

Due Diligence refers to the process of investigating a person, company or investment opportunity prior to entering into a formal relationship. Due Diligence involves a combination of background checks, formal interviews with one or more key persons and it also includes a review of that person’s or company’s business methods and operations. The objective of Due Diligence is to confirm that what has been presented as truth in fact is the truth.

For insurance agents, Due Diligence includes staying on top of their appointed companies and their changing financial condition. It should also include a proper review of key information about the various brokers through which the agent places policies and sends premium on behalf of his clients.

For investors, proper Due Diligence should uncover questionable issues about the investment promoter or the veracity of his investment track record. In addition, investment promoters should be prepared to accept a reasonable amount of accountability through language in their Offering Memorandums and Operating Agreements that allows their investors reasonable access to books and records. Independent administrators and auditors should be part of the investment structure and those persons should be interviewed as well.

Mr. Sapourn has conducted Due Diligence on dozens of insurance brokers and investment promoters. If you are considering a business relationship where a substantial amount of money is at stake, then let Mr. Sapourn assist you in conducting the proper Due Diligence.