No investor can or should trust institutions without conducting their own due diligence and risk profile / risk appetite assessment first. In the past investors could possibly rely on professional ‘trusted’ advisors to help then navigate the due diligence part, at least in theory. Risk and risk appetite assessment was the more tricky part and not even the professionals had sophisticated enough tools to help their clients through this quagmire landscape.
We believe this is the unintended consequence of over regulation or an over regulated environment. Relational trust has been eroded in favour of ‘legislative trust’ and therefore the impersonal ‘hand of public scrutiny’ is supposed to protect the innocents.
We need to ensure the pendulum swings back to a happy balance between relationship and legislative trust, unburden ourselves from the over regulated and expensive compliance environment we have allowed to engulf and overwhelm us, not adding any value, but stifling innovation instead.
- David Hunter: From Roman market to flea market, caveat emptor (knoxnews.com)
- Q & A: How Do I Evaluate This Business? Real-World Due Diligence (upandrunning.bplans.com)
- What Do You Call A Salesman You Can Trust (frontofficebox.com)
- Buyer Seller Beware (madhatters.me.uk)
- Due Diligence Training Course (sellingprivatecompanies.com)
- Start-up due diligence is not mysterious (finance.fortune.cnn.com)
- Rumour helping improve general risk appetite a little (forexlive.com)
- What is Due Diligence? (sellingprivatecompanies.com)