M&A diligence used to be an approach where lawyers would sift through piles of papers in order to assess the performance and operations of the seller. Modern technology gives lawyers and other dealmakers the ability to conduct their analysis with a speed and efficiency previously impossible.
Tech Due Diligence
In the current climate of GDPR regulations and cybersecurity risks, performing tech due diligence is vital to the health of a business. To conduct a proper tech due diligence, it is important to examine the security of a software company and ensure that they are compliant. It also involves analyzing the potential of the company’s intellectual property portfolio and identify any potential violations.
During the acquisition process 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, unreported tax liabilities, non-filing of exposures, tax on payroll as well as sales and use tax and property taxes.
During the due-diligence procedure it is essential to have a plan in place for gathering and sharing all relevant information. A www.sqsapps.com/how-small-businesses-can-benefit-from-board-portal-software set of playbooks that can be utilized throughout the process by teams helps to keep everyone on the same page and ensures that everyone is on the same page. Loopio’s collaborative workspace and team workspace features are ideal to accomplish this goal, allowing teams to stay focused on their task and avoid getting distracted by other tasks.