Not too long ago, M&A due diligence meant lawyers digging through piles of paper to assess the operation of a buyer. While there’s a lot of work to do in the diligence process, modern technology allows lawyers and other dealmakers to carry out their analysis at rates and efficiency that were simply unachievable until today.

Tech Due Diligence

In this day and age of cybersecurity and GDPR regulations performing due diligence on technology is vital to the success of a company. A thorough tech due diligence process involves evaluating a software company’s security and making sure they are fully compliant. It also involves analyzing the strengths of the company’s intellectual property portfolio, and identify any potential infringement issues.

In the course of an acquisition it is crucial to comprehend the financial structure of a business and ensure that all parties are on the same page on expectations. A thorough due diligence exercise can reveal concerns such as overstated net losses, unreported taxes liabilities, non-filing risks payroll taxes and sales and use tax.

During the due diligence process, it’s essential to have a plan to collect and share all necessary information. Having a set of playbooks that can be used by teams throughout the process can help keep everyone on the same page and provides continuity. Loopio’s collaborative workspaces and team workspaces features help teams concentrate on their tasks and prevent them from getting distracted by other tasks.

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