Due diligence is a process carried out by a business prior to investing in a business. This includes reviewing the documents of the company and examining references, as well as looking for hidden details. Due diligence software can help companies manage the process. It lets them centralize and document processes like assessments, financial diligence, and environmental social, corporate, and governance (ESG).
For example, if you are conducting a technology due diligence, the person doing it will need all the documentation of your product, including architectural diagrams, tech solutions and integrations backup and recovery servers and the process frameworks that were used to develop the product. Having all of this documented can accelerate the process and reduce the risks associated with a possible deal.
Another typical due diligence procedure is a tax examination, wherein the acquirer reviews the target company’s tax profile. This may reveal tax liabilities, such as overstated net operating loss, underreported tax expenses, and exposures to tax on sales and use. It can also uncover tax deductions and credits.
A virtual data room is one of the most effective tools for due diligence. It can serve as a secure space to store your files and share them with others. It should accommodate a variety of file formats, including PDF, Word, Excel and many others. It should also come with an intuitive search and browse feature as well as file sharing features and collaboration tools. In addition it should allow simple drag and drop uploads, multiple levels of security, and an integrated viewer. It should also be compatible with all major browsers and mobile devices. SS&C Intralinks is a good option, since it provides a powerful collaboration tool and an intuitive user interface. It offers a free version that can hold up to 10GB of storage and 250MB upload limit. It’s compatible with Android or iOS devices. It also comes with security features like AES 256-bit encryption and ISO 27701 certification.