M&A diligence was an approach where lawyers would sift through piles of documents to evaluate the operations and performance of the seller. Although there’s still a lot of work to be completed in the diligence process, modern tools enable lawyers and other dealmakers to perform their analysis at speeds and efficiency levels that were simply unachievable until today.
Tech Due Diligence
In the age of cybersecurity and GDPR regulations performing due diligence on tech is vital to the success of a business. In order to conduct a proper tech due diligence, it is essential to evaluate the security of a software firm and make sure that they’re compliant. It also includes analyzing the strength of the company’s intellectual portfolio and identify any potential infringement issues.
When acquiring it is essential to be aware of the financial structure of a business and ensure that all parties are aligned on expectations. A thorough due-diligence exercise can uncover issues such as overstated net losses, tax unreported liabilities, risks of non-filing, tax on wages and sales and use tax.
During the due diligence process, it’s important to have a clear plan for collecting and sharing all necessary information. A set of playbooks, that can be used throughout the process by teams helps to keep everyone on the right path and ensures consistency. Loopio’s team workspace and collaboration features are perfect to accomplish this goal, allowing teams focus on their responsibilities and avoid getting distracted by other tasks.