M&A diligence used to be a process in which lawyers would go through piles of documents to evaluate the operations and performance of the seller. Modern tools allow lawyers and other dealmakers to perform their analyses with a speed and efficiency that was previously impossible.
Tech Due Diligence
In an age of cybersecurity and GDPR regulations performing due diligence on technology is essential to the overall health of a business. A proper due diligence process in tech involves evaluating a software business’s security and ensuring they are compliant. Also, it involves analyzing the strengths of the intellectual property portfolio of the company and finding any possible infringement issues.
During the acquisition during the acquisition, it is crucial to know the financial structure of a company and ensure that all parties are on the same page with respect to expectations. A thorough due diligence process can uncover issues such as overstated net losses, unreported taxes liabilities, risks of non-filing, taxes on payroll, and sales and use tax.
During the due-diligence procedure it is crucial to establish a strategy for gathering and sharing all relevant information. Playbooks that can be utilized by teams throughout the process can help to ensure that everyone is on the same page, and also ensures continuity. Loopio’s collaborative workspaces and team workspaces features allow teams to focus on their work and avoid being distracted by other tasks.
