Not too long ago, M&A due diligence meant lawyers sifting through piles of papers to evaluate the operations of a seller. While there’s still a lot of work to be completed in the diligence process modern tools enable lawyers and other dealmakers to conduct their analyses at rates and efficiency that were previously unattainable now.
Tech Due Diligence
In this day and age of cybersecurity and GDPR regulations, performing tech due diligence is essential to the overall health of a company. To conduct a proper tech due diligence it is important to examine the security of a software firm and make sure that they’re compliant. It also examines the strength and scope of the company’s intellectual property, as well as identifying any potential problems.
During the acquisition, it is important to understand the financial structure of a company and ensure that all parties have the same expectations. A thorough due diligence can uncover problems such as understated net losses, unreported tax liabilities, risks of non-filing, taxes on payroll, and sales and use tax.
During the due diligence process, it’s important to have a clearly defined plan to collect and share the information needed. A set of playbooks, that can be used throughout the process by teams helps keep everyone on the right path and ensures that everyone is on the same page. Loopio’s team workspace and www.sqsapps.com/virtual-data-room-pricing-for-better-understanding collaboration features are perfect for this, helping teams remain focused on their tasks and not get distracted by other tasks.