As the business landscape around the world continues to change and becomes more complex regulatory compliance is becoming more important than ever. It is crucial to conduct thorough due diligence when you are seeking investment, financing or partnerships. This will ensure that your business remains in compliance today and future.
Regulatory due diligence is the process of the process of analyzing and monitoring an investor, partner or customer’s background to ensure compliance with laws and regulations. It covers a wide range of subjects including corporate governance, legal compliance and data security, among more. It can be used to evaluate the ability of a target to adapt and improve its technological capabilities.
It’s a must for any M&A deal. According to MetricStream’s research, the failure rate for deals in the world is anywhere from 70% to 90. The uncertainty of geopolitics along with regulatory hurdles and badly advised acquisitions are among the main reasons. A thorough approach to the regulatory realm can help reduce these risks, thus increasing the likelihood of a successful outcome.
To reduce risks to minimize risks, regulatory due diligence should be conducted concurrently with financial and commercial due https://fitboardroom.com/esg-due-diligence-in-investment-planning/ diligence. Failure to uncover compliance issues could lead to significant fines, losses of profits and a damaged reputation. It can even lead to a criminal conviction in severe cases. It is crucial to be proactive and use a solution which lets you conduct due diligence and regulatory screenings across different jurisdictions. Nexis Diligence+(tm) incorporates a full business intelligence platform with anti-money laundering (AML), anti-bribery and corruption (ABC) and forensic services to provide an all-in-one source of truth.