In the past, M&A due diligence meant lawyers sifting through literal piles of papers to analyze the activities of a seller. Although there’s still a lot of work to be completed during the diligence process modern tools allow lawyers and other dealmakers to perform their analyses at speeds and efficiency levels that were not possible until today.

Tech Due Diligence

In this day and age of cybersecurity risks and GDPR regulations, performing tech due diligence is vital to the success of a business. In order to conduct proper tech due diligence, it is essential to evaluate the security of a software firm and make sure they are in compliance with. It also involves analyzing strength of the company’s intellectual portfolio and identify any potential infringement issues.

In the course of an acquisition during the acquisition, it is crucial to understand the financial structure of a business and ensure that all parties share the same expectations. A thorough due diligence process can uncover issues such as overstated net losses, unreported taxes liabilities, non-filing risks tax on wages and sales and use tax.

During the due diligence process, it’s important to have a clear plan to collect and share all necessary information. Playbooks that can be used by teams throughout the process helps keep everyone on the same page and helps ensure uniformity. Loopio’s collaborative workspaces and team workspaces features help teams concentrate on their work and not get distracted by other tasks.