M&A diligence was an approach where lawyers would sort through piles of documents to evaluate the operations and performance of sellers. Modern technology gives lawyers and other dealmakers to perform their analyses with a speed and efficiency previously impossible.
Tech Due Diligence
In the current climate of GDPR regulations and cybersecurity threats, performing tech due diligence is vital to the success of a business. To conduct proper tech due diligence, it is important to examine the security of software companies and ensure that they are compliant. It also involves analyzing potential of the company’s intellectual property portfolio, and the identification of any potential violations.
In the process of acquiring a company, it’s vital to understand the financial structure of the company and make sure that all parties are in agreement on expectations. A thorough due diligence exercise can reveal concerns such as overstated net losses, unreported tax liabilities, non-filing risk, taxes on payroll, and sales and use tax.
During the due-diligence process it is essential to have a plan for gathering and sharing all relevant information. A set of playbooks, which can be utilized throughout the process by teams, helps to keep everyone on the right path and ensures consistency. Loopio’s collaborative workspace and team workspace features are perfect for this purpose, helping teams stay focused on their task and avoid getting distracted by other tasks.