M&A diligence used to be a process where lawyers would go through piles of papers in order to assess the operations and performance of a seller. Although there’s still plenty of work to be completed during the diligence process modern tools enable lawyers and other dealmakers to conduct their analysis at speeds and efficiency levels that were simply unachievable until the present.
Tech Due Diligence
In the midst of cybersecurity threats and GDPR regulations, performing due diligence on technology is essential for the health of your company. A proper tech due diligence procedure involves evaluating a software company’s security and ensuring that they are in compliance with GDPR. It also examines the extent and strength of the company’s intellectual property, and identifying any issues that could be.
When acquiring it is essential to be aware of a company’s financial structure and make sure that all parties are on the same page on expectations. A thorough due diligence procedure can uncover concerns like overstated net operating losses, unreported tax liabilities, non-filing exposures, tax on payroll, sales and use taxes, and property taxes.
During the due diligence process it is essential to establish a strategy for gathering and sharing all relevant information. The use of playbooks that can be utilized by teams throughout the process helps to ensure that everyone is on the same page, and also ensures the consistency. Loopio’s team workspace and collaboration features are perfect to accomplish this goal, allowing teams to stay focused on their task and avoid being distracted by other tasks.