The Importance of Regulatory Due Diligence in M&A Transactions

As the business landscape around the world continues to https://fitboardroom.com/esg-due-diligence-in-investment-planning/ change and become more complex, regulatory compliance is more important than ever. If you’re looking for investment or financing it is crucial to perform thorough due diligence to ensure your business is compliant now and into the future.

Regulatory due diligence is a way of evaluating, monitoring and ensuring compliance with laws and regulation. It covers a range of topics like corporate governance, legal compliance data security, corporate governance, and more. It can also be used to identify the capability of a target to undergo technological change and growth.

It’s a must for any M&A transaction. According to MetricStream’s research the failure rate for deals in the world ranges between 70% and 90. Geopolitical uncertainties as well as regulatory hurdles and poorly advised acquisitions are among the main reasons. Conducting a thorough due diligence process for regulatory compliance can lower the chance of these issues, thereby increasing the chance of a successful conclusion.

To reduce risk to minimize risks, regulatory due diligence should be conducted simultaneously with financial and commercial due diligence. Failure to find compliance issues could lead to substantial fines, loss of profit and a damaged reputation. In severe cases, it can even lead to a criminal conviction. It is crucial to be proactive in the process, leveraging the power of a system that allows you to conduct regulatory due diligence and other screenings across various jurisdictions in a seamless fashion. Nexis Diligence+(tm) incorporates a full business intelligence platform with anti-money laundering (AML), anti-bribery and corruption (ABC) and forensic services to offer an all-in-one source of truth.