When it comes to business acquisitions, the significance of the due diligence process can’t be understated. Having prior knowledge about all aspects of your new investment or acquisition will save you from a massive headache in the future. Business due diligence allows you to make an informed decision with all the facts.
Whether you’re buying or investing in a SaaS, e-commerce store, mobile app, plugin, or any other type of tech-enabled business – you need to conduct thorough due diligence of the technology. In this guest article, we provide investors with a guide to technology due diligence.
A quality of earnings report (also referred to as a QOE report) is a vital part of due diligence when selling, buying or investing in a business. If you’re selling the business, it is referred to as a sell-side quality of earnings report. If you’re buying or investing, it’s a buy-side quality of earnings report. The difference has more to do with who’s requesting the report and why than it does with the report’s analysis and contents.
What is a due diligence period? Buying or investing in a business is a big decision. The due diligence period is an opportunity to dig deeper into a company’s legal, financial, and operational aspects before you commit to a final purchase. This is your chance to confirm the accuracy of the seller’s representations, as well as to discover any important information the seller might not have disclosed.
TABLE OF CONTENTS Due Diligence Document Request During the due diligence period, a business buyer or investor will request key details and documents about the business. These documents can include legal, financial, sales, customer, technology, operations, and human resources areas. DueDilio has created a template that can be used as a starting point of drafting…
In most M&A transactions, one of the first questions for the parties to the transaction is how the deal should be structured. When the time comes to draft the purchase agreement, there will be significant differences in the agreement depending on the type of transaction structure agreed upon by the buyer and the seller.