Due diligence is performed by a firm before investing in a company. This involves going over the company’s documents, verifying references and looking for any hidden information. Due diligence software helps firms manage the process. It lets them centralize and document processes like assessments, financial diligence, and environmental social, corporate, and governance (ESG).
For instance, if you are doing a tech due diligence, the person doing it will require all your documentation for your product such as architectural diagrams, tech solutions and integrations, backup and recovery, servers, and the process frameworks that were used to create the product. All of this documentation can aid in the speed of the process, as well as reduce the risks associated with potential deals.
Tax examinations are another common due diligence process in which the acquirer examines the tax profile of the targeted company. This may reveal tax liabilities such as overstated net operating losses, underreported tax expenses, and exposures to tax on sales and use. Moreover, it can also identify unreported tax credits and deductibles.
One of the best tools for due diligence is a virtual data room which can offer a safe place to save and share files. It should be able to accommodate a variety of file formats, including PDF, Word, Excel, and others. It should also feature an option to search and browse as well as collaboration tools and file sharing. It should also permit drag-and-drop uploads with multiple security levels and a built-in viewer. It should also work with all major browsers and mobile devices. An excellent choice is SS&C Intralinks, which offers an intuitive user interface as well as powerful collaboration tools. It has a trial version that can provide up to 10GB of storage and 250 MB of upload limit and is compatible with Android and iOS devices. It also provides security features like AES 256-bit encryption and ISO 27701 certification.