The Importance of Regulatory Due Diligence in M&A Transactions

Compliance with regulatory requirements is more essential than ever before as the global business landscape continues its evolution and increase in complexity. It is important to perform thorough due diligence when you are seeking investment, financing or partnerships. This will ensure that your company remains in compliance today and in the future.

Regulatory due diligence is a method of evaluating, monitoring and ensuring compliance with laws as well as regulations. It covers a broad range of topics, including legal compliance, environmental practices, corporate governance, data privacy, and more. It can be used to determine the capabilities of a company’s target for technological change and growth.

It’s essential for any M&A transaction to have this. According to research conducted by MetricStream, the failure rate of deals worldwide ranges from 70% to 90%, with issues with regulatory regulations, geopolitical uncertainty and poorly planned acquisitions being the top three reasons. The proper diligence in recommended you read https://edfpartenaires.fr/optimizing-due-diligence-the-power-of-vdrs-in-todays-business-world/ the area of regulation can minimize these risks, increasing the chance of a successful result.

Due diligence in a regulatory context must be conducted in combination with commercial and financial M&A due diligence to limit the risk. Failure to find compliance issues could result in significant fines, lost profit and a damaged reputation. In extreme cases, it can even lead a criminal conviction. It is crucial to be proactive with the process, and using a solution that allows you to perform regulatory due diligence and other screenings across various jurisdictions seamlessly. Nexis Diligence+(tm) is a complete business intelligence platform with anti-money laundering (AML), anti-bribery and corruption (ABC) and forensic services to provide one source of truth.