Not too long ago, M&A due diligence meant lawyers sifting through piles of paperwork to determine the performance of a seller. While there’s still a lot of work to be done in the diligence process modern tools enable lawyers and other dealmakers to conduct their analysis at rates and efficiency that were simply unachievable until the present.
Tech Due Diligence
In the age of cybersecurity and GDPR regulations conducting tech due diligence is vital to the success of a company. A thorough tech due diligence procedure involves evaluating a software company’s security and making sure they are compliant. It also involves analyzing potential of the company’s intellectual portfolio and the identification of any potential violations.
In the course of an acquisition it is essential to know a company’s financial structure and ensure that all parties are aligned on expectations. A thorough due diligence exercise can uncover issues such as overstated net losses, unreported tax liabilities, non-filing risk, tax on wages and sales and use tax.
During the due-diligence process it is important to have a plan in place for gathering and sharing all relevant information. A set of playbooks, which can be utilized throughout the process by teams, assists in keeping everyone on the same page and ensures consistency. Loopio’s team workspaces and collaboration features help teams focus on their jobs and prevent them from getting distracted by other tasks.