The Importance of Regulatory Due Diligence in M&A Transactions

Compliance with regulations is more crucial than ever before as the global business landscape continues to change and complexity. Whether you are seeking investment or financing, it’s imperative that you do your due diligence thoroughly to ensure that your business remains in compliance now and into the future.

Regulatory due diligence is the process of evaluating, observing and ensuring compliance with laws and regulation. It covers a range of topics like legal compliance, corporate governance and data security, among more. It is used to assess the capacity of a company to adapt and develop technologically.

It’s essential for any M&A transaction to have this. According to research conducted by MetricStream, the global deal failure rate ranges from 70% to 90%, with uncertainties in the geopolitical environment, regulatory hurdles and poorly-planned acquisitions being among the top three reasons. Conducting thorough regulatory due diligence will reduce the chance of these issues, thus increasing the likelihood of a successful outcome.

To minimize https://fitboardroom.com/esg-due-diligence-in-investment-planning/ risks To reduce risks, regulatory due diligence must be conducted concurrently with financial and commercial due diligence. Failure to spot compliance issues could result in significant fines, lost profit and a damaged reputation. In severe cases, it may result in to a criminal conviction. It is crucial to be proactive and choose a software that allows you to perform regulatory screenings and due diligence across different jurisdictions. Nexis Diligence+(tm) is a complete business intelligence platform, which includes anti-money laundering (AML) as well as anti-bribery and corruption (ABC) and forensic services to provide an all-in-one source of truth.