Not too long ago, M&A due diligence meant lawyers digging through piles of papers to analyze the activities of a seller. Modern tools give lawyers and other dealmakers the ability to perform their analyses with speed and efficiency that was previously unattainable.
Tech Due Diligence
In the current climate of GDPR regulations and cybersecurity threats performing due diligence on tech is vital for the health of a company. To conduct proper tech due diligence it is important to examine the security of software companies and make sure they are in compliance with. It also examines the extent and strength of the company's intellectual property, as well as identifying any potential problems.
In the process of acquiring a company it is essential to be aware of the financial structure of the company and make sure that all parties are aligned on expectations. A thorough due diligence procedure can uncover issues like overstated net operating losses, not reported tax obligations, non-filing liabilities, taxes on payroll as well as sales and use tax and property taxes.
In the process of due diligence, it is important to establish a strategy for collecting and sharing all relevant information. A set of playbooks that can be used throughout the process by teams, assists in keeping everyone on the same page and ensures consistency. Loopio's team workspaces and collaboration features help teams stay focused on their work and prevent them from getting distracted by other tasks.