M&A diligence used to be a process in which lawyers would look through a plethora of papers to assess the operation and performance of the seller. Modern tools give lawyers and other dealmakers the ability to conduct their analysis with a speed and efficiency that was previously impossible.
Tech Due Diligence
In this day and age of cybersecurity risks and GDPR regulations performing due diligence on technology is vital to the health of a business. To conduct thorough tech due diligence, it is necessary to assess the security of a software firm and make sure that they’re compliant. It also involves analyzing potential of the intellectual property portfolio of the company and identify any potential violations.
When acquiring it is crucial to comprehend a company’s financial structure and make sure that all parties are in agreement on expectations. A look at this now thorough due diligence can reveal concerns such as overstated net losses, unreported tax liabilities, risks of non-filing, taxes on payroll, and sales and use tax.
During the due diligence process, it’s crucial to establish a clear strategy to collect and share the information needed. A set of playbooks that can be utilized by teams throughout the process helps keep everyone on the same page, and also ensures continuity. Loopio’s team workspace and collaboration features are ideal for this, helping teams focus on their tasks and avoid being distracted by other tasks.