Due diligence is conducted by a company prior to investing in a business. This involves examining the company’s documents and examining references, as well as looking for any hidden information. Due diligence software can help companies manage the process. It allows them to centralize and document processes such as assessments, financial diligence, and environmental social, corporate and governance (ESG).
For example, if you are performing a tech due diligence, the person doing it will need all documentation on your product including architectural diagrams integrations and tech solutions such as backup and recovery servers and the process frameworks that were used to develop the product. All of this documentation can aid in speeding up the process and decrease the risk of potential deals.
A tax examination is another regular due diligence process that is where the acquirer looks at the tax profile of the target company. This can uncover tax liabilities, such as overstated net operating loss and tax expenditures that are not reported and exposures to tax on sales and use. It could also reveal tax deductions not reported as well as credits.
One of the best tools for due diligence is a virtual data room which can provide a safe and secure location for sharing and storing files. It should have the ability to support file formats like PDF, Word, Excel and many more. It should also offer an intuitive search and browse function, file sharing features and collaboration tools. In addition it should permit simple drag and drop uploads with multiple levels of security, and a built-in viewer. It should support all major mobile devices and browsers. SS&C Intralinks is a good choice as it offers a powerful collaboration tool and an intuitive user interface. It comes with a no-cost version that has up to 10GB storage and 250MB upload limit. It’s compatible with Android or iOS devices. It also has security features like AES 256 bit encryption and ISO 27701 certificate.