As the business landscape around the world continues to change and become more complex, compliance with regulations is more crucial than ever. If you’re looking for investment, funding or partnerships, it’s imperative that you undertake thorough due diligence to ensure recommended you read https://edfpartenaires.fr/optimizing-due-diligence-the-power-of-vdrs-in-todays-business-world/ your company is in compliance today and into the future.
Regulatory due diligence is the process of reviewing and monitoring an potential customer, partner or investor’s background to ensure that they are in compliance with the laws and regulations. It covers a range of issues, including environmental practices, legal compliance corporate governance, data privacy and more. It can also be used to determine the capability of a target to undergo technological advancement and growth.
It’s essential for any M&A transaction. According to MetricStream’s research, the global deal fail rate is anywhere from 70% to 90. Geopolitical uncertainties as well as regulatory hurdles and poorly advised acquisitions are the most frequent reasons. Doing a thorough regulatory due diligence can help reduce the risk of these issues, thereby increasing the chance of a successful conclusion.
Regulatory due diligence must be conducted in conjunction with commercial and financial M&A due diligence to minimize the risk. Failure to identify compliance issues could result in significant fines and a loss of profits, as well as a damaged reputation. This could even result in a criminal conviction in severe instances. It is crucial to be proactive in the process and select a solution that allows you to perform due diligence and regulatory screenings across multiple jurisdictions. Nexis Diligence+ ™ integrates an integrated business intelligence platform and anti-money laundering services (AML) and anti bribery and corrupt (ABC), and the forensic services into one source.
