Compliance with regulatory requirements is more important than ever as the global business landscape continues to grow and increase in complexity. When you’re seeking investment or funding it is crucial to undertake thorough due diligence to ensure your business remains in compliance now and into the future.
Regulatory due diligence is a way of evaluating, observing and ensuring compliance with laws and regulations. It covers a wide range of subjects including corporate governance, legal compliance data security, corporate governance, and more. It can be used to determine the ability of a target to adapt and improve its technological capabilities.
It’s essential for any M&A transaction. According to research by MetricStream the rate of failure for deals in the world varies between 70% and 90% with regulatory hurdles, geopolitical uncertainty and ill-advised acquisitions being among the top three reasons. Doing a thorough regulatory due diligence can reduce the risk of these issues, thereby increasing the likelihood of a successful conclusion.
To minimize risk To minimize risk, regulatory due diligence must be conducted simultaneously with financial and commercial due diligence. Failure to spot compliance issues may result in significant fines, losses of profits and a damaged reputation. It could lead to an indictment in serious instances. The key is to be proactive in the process by utilizing the power of a system that allows you to conduct regulatory due diligence and other screenings across various jurisdictions seamlessly. Nexis Diligence+(tm) integrates a comprehensive business intelligence platform with anti-money laundering (AML), anti-bribery and corruption (ABC) and forensic services to offer one source of information.
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