Not too long ago, M&A due diligence meant lawyers digging through piles of paperwork to determine the operation of a buyer. Modern technology gives lawyers and other dealmakers the ability to analyze their findings with a speed and efficiency previously impossible.
Tech Due Diligence
In the age of cybersecurity risks and GDPR regulations performing due diligence on technology is vital to the success of a business. To conduct a proper tech due diligence it is necessary to assess the security of a software company and make sure they are in compliance with. It also involves analyzing the quality of the company’s intellectual portfolio and finding any possible infringement issues.
In the course of an acquisition, it is important to know the financial structure of the company and ensure that all parties share the same expectations. A thorough due diligence process can uncover problems like understated net operating losses, not reported tax liabilities, non-filing exposures, taxes on payroll, sales and use taxes and property taxes.
During the due diligence process it is essential to have a plan for gathering and sharing all relevant information. The use of playbooks that can be used by teams throughout the process can help to ensure that everyone is on the same page and helps ensure continuity. Loopio’s team workspace and collaboration features are perfect for this, helping teams focus on their responsibilities and avoid getting distracted by other tasks.