When a firm decides to invest in a business, they conduct due diligence. This includes reviewing the company's documentation, checking references, and scouring for hidden information. Due diligence software assists companies manage the process. It lets them centralize and document processes like assessments, financial diligence, and environmental, social, and corporate governance (ESG).
For example, if you are conducting a tech due diligence, the person performing it will need all the documentation of your product including architectural diagrams integrations and tech solutions, backup and recovery, servers and the process frameworks that were used to develop the product. Having all of this documented can help to speed up the process and reduce risks that could arise from a deal.
A tax examination is a common due diligence process that is where the acquirer looks at the tax profile of the target company. This could reveal tax liabilities such as understated net operating losses as well as tax expenses that are not reported and exposures to tax on sales and use. It also can reveal tax deductions not reported as well as credits.
A virtual data room is one of the best tools available for due diligence. It can serve as a safe place to store files and share them. It should support multiple file formats, including PDF, Word, Excel and many more. It should also have an option to search and browse, file sharing and collaboration tools. Additionally, it should allow for easy drag and drop uploads, multiple levels of security and an integrated viewer. It should also work with find here all major browsers and mobile devices. An excellent choice is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It has a trial version that can hold up to 10GB of storage space and a 250MB upload limit. It is compatible with Android or iOS devices. It also has security features like AES 256 bit encryption as well as an ISO 27701 certificate.
