M&A diligence was a procedure where lawyers would go through piles of papers to assess the operations and performance of a seller. While there’s still a lot of work to be completed in the process of diligence, modern technology allows lawyers and other dealmakers to conduct their analyses at rates and efficiency that were simply unachievable until now.
Tech Due Diligence
In the age of cybersecurity risks and GDPR regulations, conducting tech due diligence is crucial for the health of your company. A proper tech due diligence procedure involves assessing a software company’s security and ensuring that they are fully compliant. It also involves analyzing the strength of the company’s intellectual property portfolio and finding any possible infringement issues.
In the course of an acquisition it is crucial to comprehend the financial structure of the company and make sure that all parties agree on expectations. A thorough due diligence process can reveal issues like overstated net operating losses, not reported tax liabilities, non-filing exposures, taxes on payroll as well as sales and use tax https://sqsapps.com/due-diligence-software-with-integrated-document-editing-feature and property taxes.
During the due-diligence process, it is important to establish a strategy for gathering and sharing all relevant information. Playbooks that can be utilized by teams throughout the process can help keep everyone on the same page and helps ensure continuity. Loopio’s collaborative workspaces and team workspaces features help teams concentrate on their responsibilities, and prevent them from getting distracted by other tasks.