Compliance with regulations is more crucial than ever as the global business landscape continues to change and increase in complexity. No matter if you’re looking to invest, funding or partnerships it is essential to conduct thorough due diligence so your company is in compliance today and into the future.
Regulatory due diligence is a way of evaluating, monitoring and making sure that you are in compliance with laws and regulations. It covers many issues including corporate governance, legal compliance data security, corporate governance, and more. It can also be used to identify the capabilities of a company’s target for technological adaptation and growth.
It’s a must for any M&A deal to ensure that it’s. According to research conducted by MetricStream, the rate of failure for deals in the world is between 70% and 90% with the complexities of regulatory compliance, geopolitical uncertainty and unwise acquisitions among the top three reasons. Conducting thorough regulatory due diligence can help reduce the risk of these issues, ultimately increasing the chances of a successful conclusion.
To reduce risks, regulatory due diligence should be conducted simultaneously with financial and commercial due diligence. Failure to spot compliance issues can result in significant fines, loss of profits and a damaged reputation. In extreme situations, it can lead to a criminal conviction. The key is to be proactive with the process, leveraging an application that allows you to perform regulatory due diligence and other screenings across various jurisdictions in a seamless way. Nexis Diligence+(tm) incorporates a full business intelligence system with anti-money laundering (AML) and anti-bribery corruption (ABC) and forensic services to offer an all-in-one source of truth.