In the past, M&A due diligence meant lawyers digging through piles of paper to assess the performance of a seller. Although there’s still a lot of work to be done in the process of diligence, modern tools enable lawyers and other dealmakers to perform their analysis at rates and efficiency that were not possible until the present.
Tech Due Diligence
In the age of cybersecurity risks www.sqsapps.com/which-board-portals-provide-actual-value-to-the-board-of-directors and GDPR regulations, conducting due diligence on technology is essential for the health of a company. A thorough tech due diligence procedure involves assessing a software company’s security and ensuring that they are fully compliant. It also involves analyzing the strength and scope of the company’s portfolio of intellectual property, as well as identifying any potential problems.
In the process of acquiring, it is important to understand the financial structure of a business and ensure that all parties have the same expectations. A thorough due diligence process can reveal issues like overstated net operating losses, unreported tax liabilities, non-filing exposures, taxes on payroll, sales and use taxes, and property taxes.
During the due diligence process, it’s important to have a clearly defined plan for collecting and sharing all relevant information. Having a set of playbooks that can be used by teams throughout the process helps keep everyone on the same page, and also ensures uniformity. Loopio’s team workspace and collaboration features are ideal for this purpose, assisting teams remain focused on their work and not get distracted by other tasks.