Compliance with regulatory requirements is more essential than ever before as the global business landscape continues to grow and https://fitboardroom.com/esg-due-diligence-in-investment-planning/ complexity. If you’re looking for investment, funding or partnerships, it’s imperative that you do your due diligence thoroughly to ensure that your company is in compliance today and into the future.

Regulatory due diligence is the process of evaluating, observing and making sure that you are in compliance with laws and regulations. It covers a wide range of subjects, including legal compliance, environmental practices, corporate governance, data privacy and more. It can be used to determine a target’s ability to adapt and improve its technological capabilities.

It’s crucial for any M&A transaction. According to research conducted by MetricStream, the failure rate of deals worldwide is between 70% and 90%, with uncertainties in the geopolitical environment, regulatory hurdles and poorly planned acquisitions being the top three reasons. The proper diligence in the regulatory arena can mitigate these risks, thereby increasing chances of a successful conclusion.

To reduce risks To minimize risk, regulatory due diligence must be conducted concurrently with financial and commercial due diligence. Failure to spot compliance issues could lead to significant fines, lost profit and a damaged reputation. In severe situations, it can lead to a criminal conviction. It is essential to be proactive and use a solution which allows you to conduct due diligence and regulatory screenings across different jurisdictions. Nexis Diligence+(tm) integrates a complete business intelligence platform, which includes anti-money laundering (AML) as well as anti-bribery and corruption (ABC) and forensic services to offer an all-in-one source of truth.