M&A diligence was an approach where lawyers would go through piles of papers to determine the operations and performance of the seller. Modern technology gives lawyers and other dealmakers to analyze their findings with speed and efficiency previously impossible.

Tech pi toolbox Due Diligence

In an age of GDPR regulations and cybersecurity risks performing due diligence on tech is vital to the success of a company. A proper tech due diligence process involves evaluating a software firm’s security and making sure they are compliant. It also includes analyzing the strengths of the company’s intellectual portfolio and identifying any potential violations.

In the course of an acquisition it is essential to be aware of the financial structure of the company and make sure that all parties are on the same page on expectations. A thorough due-diligence exercise can identify issues like overstated net losses, unreported taxes liabilities, non-filing risks, tax on payroll and sales and use tax.

In the process of due diligence it is crucial to have a plan for collecting and sharing all relevant information. A set of playbooks that can be utilized by teams throughout the process can help to ensure that everyone is on the same page, and also ensures uniformity. Loopio’s collaborative workspace and team workspace features are ideal to accomplish this goal, allowing teams remain focused on their work and not get distracted by other tasks.