In the past, M&A due diligence meant lawyers sifting through literal piles of paper to assess the performance of a seller. While there’s still a lot of work to do in the diligence process, modern technology allows lawyers as well as other dealmakers to complete their analyses at speed and efficiency levels that were unattainable until today.
Tech Due Diligence
In the current climate see here now of cybersecurity risks and GDPR regulations, performing tech due diligence is vital for the health of a business. In order to conduct proper tech due diligence it is important to examine the security of software companies and make sure that they’re compliant. It also examines the quality and scope of the company’s intellectual property, as well as identifying any issues that could be.
In the process of acquiring a company it is essential to be aware of the financial structure of a business and make sure that all parties are on the same page on expectations. A thorough due diligence exercise can identify issues like overstated net losses, unreported taxes liabilities, non-filing risk, tax on payroll and sales and use tax.
During the due diligence process, it’s important to have a clear plan to collect and share all relevant information. A set of playbooks that can be utilized throughout the process by teams, helps keep everyone on the right track and ensures consistency. Loopio’s collaborative workspaces and team workspaces features allow teams to focus on their responsibilities, and prevent them from getting distracted by other tasks.