M&A diligence used to be a process where lawyers would sift through piles of papers to determine the operation and performance of sellers. Although there’s still a lot of work to be completed in the diligence process, modern tools allow lawyers as well as other dealmakers to complete their analyses at rates and efficiency that were previously unattainable today.
Tech Due Diligence
In the current climate of cybersecurity and GDPR regulations, performing tech due diligence is vital to the health of a business. A proper due diligence process for tech involves evaluating a software company’s security and ensuring that they are fully compliant. It also involves analyzing quality of the intellectual property portfolio of the company and identify any potential violations.
When acquiring, it’s vital to understand the financial structure of a business and ensure that all parties are on the same page on expectations. A thorough due-diligence exercise can uncover problems such as understated net losses, unreported tax liabilities, non-filing risks taxes on payroll, and sales and use tax.
During the due-diligence process it is important to establish a strategy for collecting and sharing all relevant information. A set of playbooks that can be utilized by teams throughout the process helps keep everyone on the same page, and also ensures consistency. Loopio’s team workspace and collaboration features are ideal for this purpose, assisting Read Full Report teams remain focused on their task and avoid being distracted by other tasks.