M&A diligence was a process where lawyers would look through a plethora of documents to evaluate the operations and performance of sellers. While there’s still a lot of work to be done in the diligence process modern technology allows lawyers and other dealmakers to perform their analyses at speeds and efficiency levels that were not possible until the present.
Tech Due Diligence
In an age of cybersecurity and GDPR regulations performing due diligence on technology is vital to the health of a company. A proper tech due diligence procedure involves evaluating a software company’s security and making sure they are in compliance with GDPR. It also involves analyzing the quality and scope of the company’s portfolio of intellectual property, as well as identifying any issues that could be.
During the acquisition, it is important to know the financial structure of a company and ensure that all parties have similar expectations. A thorough due-diligence exercise can reveal concerns such as overstated net losses, tax unreported liabilities, non-filing risks tax on payroll and sales and use tax.
During the due diligence process, it’s crucial to have a clear plan for gathering and sharing the information needed. A set of playbooks that can be utilized by teams throughout the process helps keep everyone on the same page and ensures consistency. Loopio’s team workspace and collaboration features are perfect for this purpose, helping teams board of directors focus on their task and avoid getting distracted by other tasks.