Digital Due Diligence
Investing in the digital asset markets offers companies untapped potential for growth and development.
However, achieving success in the Digital Age also requires a thorough understanding of legal and commercial issues you are likely to encounter as you plot your course through this new and constantly evolving frontier.
Digital asset due diligence enables you to effectively manage a company’s digital properties and allows you to run your business at the speed of change.
Traditionally, due diligence is performed when businesses merge or are acquired in order to evaluate their assets and risks based on financials, management and operations, legal compliance, and similar considerations.
In today’s digital economy, however, a company’s digital and social media assets have also become significant factors for evaluation. These would include data and systems, security and privacy policies, digital vendor commitments, as well as potential digital debt and other tokenized assets.
As your trusted advisor, Veritas Global can conduct a comprehensive and independent digital due diligence assessment of your target investment, thus providing top management with a deeper understanding of its current and future positioning in today’s new economy.
Discipline, strategic, and practical advice to guide you in making informed, insightful, and empowered business decisions.
Keeping step with your digital footprint
In the new economy, every company leaves a digital footprint. Thus, digital due diligence has become a requisite not only for tech-driven organizations but also for conventional businesses that use digitized information or maintain online presence.
By now, that would mean everyone.
According to The Conference Board (TCB), comprehensive digital due diligence assessment includes an “examination of a company’s digital and social media assets, including websites, social platforms and online communities, systems and data, digital vendor commitments, security and privacy policies and compliance considerations.”
Furthermore, TCB emphasized that process requires “understanding a company’s digital assets, the level of risk, as well as the ‘digital debt’ will help to ensure both a proper valuation of the company’s digital assets, as well as the potential risks, cost, and timeline for integrating a company’s digital presence, systems, data and vendors.”
By these standards, we can see that due diligence has leveled-up from its conventional functions and now entails prospecting areas for growth and opportunity that can continue to push the value of digital assets even after closing the transaction, leading to greater scalability and profitability for your business.
At Veritas Global, we take pride in our broad experiences in overseeing and executing mergers and acquisitions, as well as in helping raise investment funds. These experiences, together with our technical understanding of various types of transactions — from blockchain to smart contracts – make our team uniquely equipped with the proper tools, methodology, and expertise to assess a company’s digital assets and offer measurable, data-driven advise.
Whether to augment traditional due diligence or to replace it, there is no turning back from the incursion of digital assets and capabilities in the modern market. Aside from an organization’s presence in cyberspace, digital dynamics have also permeated internal processes like management, research and development, human resources, and other operations that are now largely conducted via automated technology.
Why perform digital asset due diligence?
Just like in conventional due diligence, a comprehensive digital evaluation is usually performed on behalf of investors as a preliminary step before a sale, merger, or acquisition. Its purpose is to investigate, audit, and review the records of the target entity in order to determine the commercial and legal viability of said transaction.
Digital asset due diligence is likewise concerned about guiding investors in making sound, ethical, and profitable business decisions, particularly in dealing with companies or assets that are digitally native, maintain a digital presence hold digital assets or have digital asset based revenues. Performing digital asset due diligence reveal snot only their potential digital debt obligations, but also prospects for increasing their value and sales moving forward.
While both conventional and digital due diligence are exercised to ensure transparency, it usually requires a more specialized skill set to research and uncover conditions that are unique to the digital world.
Our team at Veritas Global understands the intricacies of the digital economy and has the ability to discover potential cyber-related issues that may not be apparent using traditional due diligence methods alone.
In partnering with Veritas Global, you will gain a deeper and more comprehensive knowledge ofa company’s digital assets, as well asits levels of risk and digital debt — ensuring a more accurate valuation for profitability and better leverage in creating an effective integration plan for the future.