M&A diligence was a process where lawyers would look through a plethora of papers to determine the operations and performance of the seller. Modern tools give lawyers and other dealmakers the ability to perform their analyses with speed and efficiency that was previously impossible.
Tech Due Diligence
In an age of GDPR regulations and cybersecurity threats performing due diligence on tech is vital to the success of a company. A proper due diligence process in tech involves evaluating a software business’s security and ensuring that they are compliant. It also includes analyzing the strength of the company’s intellectual property portfolio and read the article the identification of any potential violations.
In the course of an acquisition, it’s vital to understand the financial structure of the company and make sure that all parties agree on expectations. A thorough due diligence exercise can reveal problems like understated net operating losses, not reported tax obligations, non-filing liabilities, taxes on payroll, sales and use taxes and property taxes.
During the due diligence process, it’s essential to have a clearly defined plan to gather and share all relevant information. A set of playbooks, that can be utilized throughout the process by teams helps to keep everyone on the right path and ensures that everyone is on the same page. Loopio’s team workspace and collaboration features are perfect for this purpose, helping teams to stay focused on their task and avoid being distracted by other tasks.