Not too long ago, M&A due diligence meant lawyers having to sift through piles of paper to assess the operations of a seller. Modern tools allow lawyers and other dealmakers to conduct their analysis with speed and efficiency that was previously impossible.
Tech Due Diligence
In the age of cybersecurity threats and GDPR regulations, executing due diligence on technology is essential for the health of your company. A proper tech due diligence process involves evaluating a software firm’s security and ensuring that they are compliant. It also involves analyzing the potential of the company’s intellectual property portfolio and finding any possible infringement issues.
When acquiring it is essential to be aware of a company’s financial structure and ensure that all parties are aligned on expectations. A thorough due diligence process can uncover issues like overstated net operating losses, unreported tax liabilities, non-filing of exposures, payroll taxes sales and use taxes and property taxes.
In the process of due diligence, it is important to establish a strategy for collecting and sharing all relevant information. Playbooks that can be used by teams throughout the process can help to ensure that everyone is on the same page and ensures continuity. Loopio’s team workspace and collaboration features are ideal for this purpose, helping teams to stay focused on their task and avoid being distracted by other tasks.