6. D&B Reports

Question 1

How do you use a d&b report?

Answer 1

A D&B report is used to assess a company’s financial stability and risk profile for due diligence and valuation purposes

Question 2

What’s included in a D&B report?

Answer 2

• Business name, address, D-U-N-S number
• Credit risk rating (risk of failure)
• Financial statements (if available)

Question 3

In a D&B report, what does the rating mean?

Answer 3

Financial Strength Indicator – Based on the company’s net worth or equity, using a code

Risk Indicator – A 1–4 score, where 1 indicates a minimal risk of failure and 4 indicates high risk.

D&B Failure Score – Predicts the likelihood of business failure within 12 months.

Question 4

What is on the front cover of a d&b report?

Answer 4

• Company Name & D-U-N-S Number (unique business identifier)
• Address & Contact Details
• D&B Rating (financial strength and risk assessment)
• Paydex Score (payment performance)
• Risk Summary (failure risk, credit risk)
• Report Date (latest update)