M&A diligence was a process where lawyers would go through piles of documents to evaluate the operation and performance of the seller. While there’s a lot of work to be done during the diligence process modern technology allows lawyers as well as other dealmakers to complete their analysis at speed and efficiency levels that were previously unattainable today.
Tech Due Diligence
In the age of cybersecurity threats and GDPR regulations due diligence on technology is essential for the health of your company. A thorough due diligence process for tech involves evaluating a software business’s security and ensuring that they are conforming to GDPR regulations. It also involves analyzing the potential of the intellectual property portfolio of the company and finding any possible infringement issues.
When acquiring a company when you are buying a business, it is essential to understand the financial structure of a company and ensure that all parties are on the same page with respect to 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 is important to have a plan for gathering and sharing all relevant information. A set of playbooks, which can be used throughout the process by teams helps keep everyone on the right track and ensures consistency. Loopio’s collaborative workspace and team workspace features are perfect to accomplish this goal, allowing teams focus on their responsibilities and avoid getting distracted by other tasks.