Due diligence is not a once-off event. Reassess existing relationships at least once a year or upon the change of risk factors.
Real World Scenario
One of the top AI startups in Europe was negotiating to acquire a data analytics company in Southeast Asia. In the course of corporate due diligence, the acquiring company found out that the target firm was not GDPR compliant and was involved in IP litigation regarding its core algorithm.
If they had failed to conduct due diligence, the startup would have been saddled with legal liabilities and subjected to regulatory fines. Rather, they restructured the deal and made it a condition that the seller should address these issues before acquisition.
Conclusion
In the cut-throat world of AI and tech, corporate due diligence is no mere formality -- it is a strategic defense. With the increasing pace of innovation and international partnerships, businesses have to be on their toes to avoid financial, legal, and ethical pitfalls.
A structured corporate due diligence process can protect the operations of companies, investor confidence, and set the stage for long-term compliant growth.
Follow Instagram @kompasianacom juga Tiktok @kompasiana biar nggak ketinggalan event seru komunitas dan tips dapat cuan dari Kompasiana. Baca juga cerita inspiratif langsung dari smartphone kamu dengan bergabung di WhatsApp Channel Kompasiana di SINI
