M&A diligence used to be an approach where lawyers would go through piles of papers to assess the performance and operations of the seller. Modern tools give lawyers and other dealmakers the ability to conduct their analysis with a speed and efficiency previously impossible.
Tech Due Diligence
In the current climate of cybersecurity risks and GDPR regulations due diligence on technology is vital for the health of your company. To conduct thorough tech due diligence, it is important to examine the security of a software company and ensure that they are compliant. 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 make sure that all parties agree on expectations. A thorough due diligence exercise can reveal concerns such as overstated net losses, unreported tax liabilities, non-filing risks payroll taxes and sales and use tax.
During the due diligence process it is essential to have a plan in place for gathering and sharing all relevant information. A set of playbooks that can be used throughout the process by teams helps keep everyone on the right path and ensures that everyone is on the same page. Loopio’s team workspaces and collaboration features allow teams to focus on their tasks and prevent them from getting distracted by other tasks.