Case Studies Details

Buying Machinery from a Small Business? Why Due Diligence Matters

When buying commercial equipment like trucks or forklifts, it’s easy to assume the seller’s word is enough, especially if the business looks legitimate. But one client’s decision to seek professional background checks before completing a £30,000 deal proved to be a wise move.

FFIATS was Contracted to conduct a comprehensive background investigation into Scaffolding Hire Company and its sole director, who was offering a DAF truck and forklift for sale.

Here’s what we discovered and why due diligence can protect you from unnecessary risk.

The Purpose of the Investigation

Our client wanted to:

• Verify the DAF truck and forklift being sold were not stolen or under finance
• Assess the financial and legal standing of the business
• Evaluate the credibility and character of the seller

Key Findings

( 1 ) The Vehicles Were Legitimate :

• The DAF truck had no outstanding finance, theft record, or accident write-offs.
• The forklift also had a clean record, not listed as stolen, although we advised inspection of the service logs and maintenance history before finalising the deal.

( 2 ) Two Outstanding Court Judgments

• While the Scaffolding Hire company appeared to be in good financial standing, with net assets of £75,490 in 2024, the director, had two County Court Judgments (CCJs) totalling over £6,000. These were still unpaid at the time of reporting.
• Although not criminal, such debts can indicate cash flow problems or a history of disputes. We advised our client to either factor this into price negotiations or request additional reassurances.

( 3 ) No Criminal or Reputational Red Flags

• The Director had no criminal history, no bankruptcies, and no adverse media coverage.
• In fact, he had been publicly praised for humanitarian aid during the COVID-19 pandemic, donating food supplies to his hometown overseas.
• His social media presence confirmed a stable personal life, family involvement, and engagement in genuine scaffolding contracts.

( 4 ) Historical Data Leaks

• Some minor data exposure was linked to a now-dissolved predecessor company, but no active security or fraud risk was identified.

Final Assessment

Why This Matters

Had our client moved forward without checking, they could have:

• Taken ownership of a truck or forklift with hidden finance,
• Engaged with a seller facing unknown legal issues,
• Missed the opportunity to negotiate a fairer deal.

Thanks to our detailed report, the client made an informed, confident purchase decision.

Considering a Business Transaction? Check Before You Sign.

Whether it’s purchasing equipment, forming a partnership, or vetting a supplier, due diligence saves money, time, and headaches. At [Your Firm Name], we offer:

• Company and asset verification,
• Director background checks,
• Financial and legal risk profiling.

• [Your Contact Number]
• [Your Email Address]
• [Your Website]