Googling

We’ve all done it.  Approached by the name of a new client, potential partner or investor, we’ve typed their name into the world’s favourite internet browser, checked a few of the links on the first page and ‘Googled’ them.  Sometimes, this alone can provide some very useful information about a subject. You can occasionally get an idea of a person or company’s general  profile (high or low) and hints of  a major red flag from these ten links that come up right away.  

 
However, the danger is that this is all the ‘due diligence’ that some companies are performing prior to their transactions.  While quick and easy, ‘Googling’ can leave large gaps in one’s knowledge of a subject, omitting sometimes critical information such as whether a business has gone into liquidation, whether a potential client is on an international watch list or whether the subject’s reputation within their industry is questionable. Here are some things to consider:
 
1. Google does not come up with everything.  There are other search engines which turn up different results based on the same search term, and frequently relevant information only comes up embedded within a  document on the 10th page.
 
2. Sites like Wikipedia are notoriously malleable – anyone, including the subject of the article, can alter what is written on the page, including removing negative allegations and adding positive content.
 
3. The internet as we know it is still in its infancy. Many files and documents are not available electronically and /or are not searchable on the internet.
 
4.Other information which is available electronically, such as company filings (in the UK), will not come up through a search engine but require access through specific websites.
 
5.Further still, other information, such as determining a person or company’s reputation within their industry, cannot be determined through filings, web content or paperwork at all, and depends on confidential sources.
 
While a quick “Google” can often be better than nothing, basic levels of due diligence can be done quickly and efficiently and can ultimately avoid potentially costly mistakes.

Posted date 01-09-2010


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