M&A diligence used to be a procedure where lawyers would look through a plethora of papers to assess the operation and performance of the seller. While there’s a lot of work to be completed during the diligence process modern tools enable lawyers and other dealmakers to perform their analyses at speed and efficiency levels that were simply unachievable until today.
Tech Due Diligence
In an age of cybersecurity risks and GDPR regulations performing due diligence on technology is essential to the overall health of a company. In order to conduct thorough tech due diligence, it is necessary to assess the security of software companies and ensure that they are in compliance. Also, it involves analyzing the quality of the company’s intellectual property portfolio, and identifying any potential infringement issues.
When acquiring a company during the acquisition, it is crucial to understand the financial structure of the company and ensure that all parties are on the same page with respect to expectations. A thorough due diligence process can uncover problems such as understated net losses, unreported tax liabilities, risks of non-filing, tax on wages and sales and use tax.
During the due-diligence process it is essential to establish a strategy 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 https://sqsapps.com/due-diligence-software-with-integrated-document-editing-feature track and ensures consistency. Loopio’s collaborative workspace and team workspace features are ideal for this purpose, assisting teams to stay focused on their task and not get distracted by other tasks.