Not too long ago, M&A due diligence meant lawyers having to sift through piles of paper to assess the activities of a seller. Modern tools allow lawyers and other dealmakers to perform their analyses with speed and efficiency that was previously impossible.
Tech Due Diligence
In the age of GDPR regulations and cybersecurity threats conducting tech due diligence is vital to the success of a business. A thorough due diligence process for tech involves evaluating a software company’s security and ensuring that they’re conforming to GDPR regulations. It also examines the quality and scope of the company’s portfolio of intellectual property, and identifying any potential problems.
When acquiring, it’s vital to understand the financial structure of a business and ensure that all parties are in agreement on expectations. A thorough due diligence can uncover problems such as understated net losses, unreported tax liabilities, non-filing risk, taxes on payroll, and sales and use tax.
During the due-diligence process it is essential to have a plan for collecting and sharing all relevant information. A set of playbooks that can be utilized throughout the process by teams, helps to keep everyone on the right track and ensures consistency. Loopio’s team workspaces and collaboration features allow teams to focus on their responsibilities, and prevent them from getting distracted by other tasks.