Step 1: Build a Company “Identity File”
Before researching negative news, lock down the company’s exact identity.
- Legal name
- HQ city/state
- Website domain
- Executives
- Parent / sister companies
Create an identity profile for this company and list possible naming collisions.
Provide exact search strings to uniquely identify it.
Step 2: Run a Negative News Sweep
Search intentionally — lawsuits, wage issues, labor violations, and regulatory actions.
Summarize negative news about [company] based in [city], [state] from credible sources only.
Categorize by lawsuits, labor issues, regulatory actions, and executive issues.
Step 3: Court Records & Government Databases
- State & county court databases
- PACER (federal cases)
- Department of Labor
- OSHA
- State Attorney General
This Same Research Applies to Investors, Partners, and Subcontractors
While this checklist is written for job seekers, the exact same background research is just as valuable when you’re considering investing in a privately held company, partnering with one, or choosing a subcontractor or vendor.
In these scenarios, the risk isn’t just your time — it’s your capital, reputation, and downstream liability. Undisclosed lawsuits, labor violations, financial distress, or unstable leadership can directly impact returns, project timelines, and legal exposure.
- Investors: identify legal, regulatory, or leadership risks before committing capital
- Business partners: avoid alignment with unstable or ethically risky operators
- Subcontractors & vendors: reduce the risk of non-payment, contract disputes, or reputational damage
Whether you’re evaluating an employer, an investment opportunity, or a strategic partner, the goal is the same: make informed decisions using verifiable signals instead of assumptions or sales pitches.
Step 4: Analyze Employee Reviews
Look for patterns — not emotional one-offs.
Step 5: Business Health Signals
- Headcount trends
- Executive departures
- Rebrands or domain changes
- Hiring spikes in finance roles
Step 6: Ownership & Leadership
Ownership structure can influence stability, culture, and decision-making. Identify who controls the company and how leadership has changed over time.
- Is it owned by a holding company or parent brand?
- Is it private equity backed?
- Has it been recently acquired?
- Do executives have a history of lawsuits or regulatory trouble?
Identify the likely ownership structure of [company]. Determine if it is PE-backed or part of a holding company.
List acquisitions, mergers, and leadership changes in the past 5 years.
Step 7: Offer Letter Review
Once you receive an offer (or contract), use AI to flag unclear compensation language, aggressive non-competes, clawbacks, forced arbitration, and overly broad IP ownership.
Analyze this offer letter/contract for risk: compensation ambiguity, termination language, non-compete/non-solicit,
clawback, arbitration clauses, IP ownership, and anything that materially reduces my protections.
Bonus: Red Flag Scorecard
- Legal risk
- Wage risk
- Leadership risk
- Culture risk
- Stability risk
Final Thought: AI Organizes — You Verify
AI helps surface patterns. Your final decision should always rely on verifiable sources.
