In the past, M&A due diligence meant lawyers sifting through piles of paper to assess the performance of a seller. While there’s a lot of work to be done during the diligence process modern tools enable lawyers and other dealmakers to conduct their analysis at speed and efficiency levels that were simply unachievable until the present.
Tech Due Diligence
In the age of cybersecurity threats and GDPR regulations, conducting due diligence on tech is essential for a company’s health. A proper tech due diligence procedure involves evaluating a software business’s security and ensuring that they’re compliant. Also, it involves analyzing the strengths of the company’s intellectual portfolio and finding any possible violations.
In the process of acquiring a company it is essential to know the financial structure of a company and ensure that all parties are aligned on expectations. A thorough due diligence process can reveal concerns like overstated net operating losses, not reported tax liabilities, non-filing exposures tax on payroll, sales and use taxes, and property taxes.
During the due diligence process, it’s vital to establish a clear strategy to collect and share all the necessary information. A set of playbooks, that can be used throughout the process by teams, assists in keeping everyone on the right path and ensures consistency. Loopio’s team workspace and collaboration features are perfect to accomplish this goal, allowing teams focus on their work and avoid getting distracted by other tasks.