M&A diligence was a process where lawyers would sort through piles of papers in order to assess the operations and performance of the seller. While there’s a lot of work to be done in the diligence process, modern tools allow lawyers and other dealmakers to perform their analyses at speeds and efficiency levels that were unattainable until today.
Tech Due Diligence
In a world of cybersecurity risks and GDPR regulations, performing due diligence on tech is essential to ensure the health of a business. To conduct a proper tech due diligence, it is essential to evaluate the security of a software firm and make sure they are in compliance with. It also involves analyzing the extent and strength of the company’s intellectual property, and identifying any issues that could be.
In the course of an acquisition it is crucial to understand the financial structure of the company and ensure that all parties are on the same page with respect to expectations. A thorough due-diligence exercise can identify issues like overstated net losses, unreported taxes liabilities, non-filing risk, payroll taxes and sales and use tax.
During the due diligence process, it’s important to have a plan for collecting and sharing the information needed. 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 workspace and team workspace features are ideal for this purpose, helping teams remain focused on their work and avoid being distracted by other tasks.