M&A diligence was a procedure where lawyers would look through a plethora of papers in order to assess the operation and performance of sellers. Modern technology gives lawyers and other dealmakers to perform their analyses with a speed and efficiency that was previously unattainable.
Tech Due Diligence
In an age of GDPR regulations and cybersecurity threats, performing tech due diligence is vital for the health of a business. A thorough due diligence process for tech involves evaluating a software firm’s security and ensuring that they are compliant. It also involves analyzing the strength and scope of the company’s intellectual property, as well as identifying any issues that could be.
When acquiring it is essential to know the financial structure of a business and make sure that all parties are on the same page on expectations. A thorough due diligence process can reveal issues such as overstated net operating losses, not reported tax obligations, non-filing liabilities, tax on payroll as well as sales and use tax and property taxes.
During the due diligence process, it’s important to have a clearly defined plan for collecting and sharing all relevant information. Having a set of playbooks that can be utilized by teams throughout the process helps keep everyone on the same page and helps ensure continuity. Loopio’s team workspaces and collaboration features help teams concentrate on their work and prevent them from getting distracted by other tasks.