Forensic testing on every deal.
Most sellers act in good faith. Recent failures in private credit, however, have shown how far forged invoices and double-pledged collateral can travel before anyone notices. Forensic checks were once reserved for deals where someone already suspected a problem. We run them on every deal, because suspicion often arises too late.
Northfield Components LLC
Invoice 10482
Date: Dec 28, 202501
| Description | Qty | Amount |
|---|---|---|
| Machined housings | 1,200 | $86,400.00 |
| Bearing assemblies | 900 | $40,500.00 |
| Freight and handling | 1 | $21,400.00 |
| Total03 | $184,300.0002 |
Document integrity: 3 exceptions
- 01File metadata shows the document was created on Feb 14, 2026, seven weeks after the invoice date.
- 02The total is set in a different typeface from the line items.
- 03The line items sum to $148,300.00, not $184,300.00.
Sent to the forensic specialist with the evidence and any innocent explanations.
Forensic checks run on every deal, not only on deals already under suspicion.
Scope
01
Document integrity
Signs that bank statements, invoices, or contracts were edited after the fact: inconsistent metadata, fonts and formatting, figures that do not foot.
02
Ledger anomalies
Statistical tests on transaction-level data for patterns that rarely occur naturally: unusual distributions of amounts, manual entries clustered at period end, round numbers where there should be noise.
03
Period-end revenue
Spikes in shipments, invoices, or distributor orders at quarter-end and year-end, followed by returns, credits, or slow collection.
04
Related parties
Payments to and from entities connected to owners or management, and customers or suppliers that share addresses, directors, or bank details with the target.
05
Round-tripping
Cash that leaves and comes back as revenue.
06
Collateral
Receivables, inventory, or equipment pledged to more than one lender, checked against UCC lien filings.
Treatment of exceptions
A forensic exception is not an accusation. It goes to a forensic specialist for review before it reaches you, and it is reported with the evidence and any innocent explanations the documents support.
What it gives your team
01
Protection against the worst outcome
Fraud discovered after closing is rarely recoverable in full, whatever the purchase agreement says.
02
A defensible process
Your diligence file shows that forensic checks were run, which matters to your IC, your LPs, and your insurer.
Discuss a transaction under LOI.
Share the sector, the deal size, and the end of exclusivity. We respond within one business day with an assessment of fit and the proposed scope of the report.