Conducting thorough business due diligence can help companies avoid encountering costly surprises after a deal has been finalized. For organizations without dedicated resources to vet potential business deals effectively and efficiently, due diligence can be overwhelming and resource-draining when tackled wholly in-house. If you have not previously considered outsourcing due diligence services, or are apprehensive about doing so, clearing up some common misconceptions may answer your outstanding questions about whether it is a good fit for your law firm or legal department.
Misconception #1: Quality will be sacrificed when outsourcing the due diligence process.
Fact: Outsourcing due diligence support to a company that specializes in these legal services can result in a high-quality deliverable without straining internal resources. Because a due diligence provider is equipped to be both broad and thorough in their review, the resulting information can help businesses make more informed decisions.
Misconception #2: Outsourcing business due diligence means sacrificing security and confidentiality.
Fact: You should always carefully vet providers before selecting an outsourced solution to handle due diligence or any other legal support service. Qualified due diligence providers have systems, processes, and safeguards in place to ensure confidentiality. Furthermore, many outsourced attorneys – whether in the U.S. or abroad – are bound by the same standards for attorney-client privilege and confidentiality that you would expect from any major law firm.
Misconception #3: The personnel conducting due diligence at an offshore provider aren’t skilled or effectively trained.
Fact: The misconception that outsourcing due diligence results in cost savings because it relies on less skilled labor is only true in instances where a company has not been thoroughly vetted and does not work with experienced professionals. Outsourcing your business due diligence tasks to qualified attorneys – both in the U.S. and offshore – means you’re getting the expertise and skill of trained legal professionals who understand U.S. laws and are adept at what they do. It’s these efficiencies that can help businesses keep resources in check when evaluating business transactions.
Baer Reed has a staff of dedicated and expertly trained attorneys who help law firms and corporate legal departments with their due diligence needs. To learn more about how outsourcing business due diligence can result in cost savings and efficiencies, contact us online today, or call us at (888) 433-1990.
- On August 16, 2018
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