Due diligence is a process carried out by a business prior to investing in a company. This includes reviewing the company’s records, confirming references and examining for any hidden information. Due diligence software helps firms manage the process. It helps them centralize and document processes like 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 require all the documentation of your product such as architectural diagrams, tech solutions and integrations such as backup and recovery servers and the process frameworks used to create the product. Having all of this documented can help accelerate the process and minimize risks of a potential deal.
Tax examinations are another typical due diligence procedure in which the acquirer examines the tax profile of the targeted company. This can reveal tax liabilities such as excessively reported losses, underreported expenses and tax liabilities for sales-and-use. Moreover, it can also find tax credits that are not reported and tax deductions.
One of the best tools to conduct due diligence is a virtual data room which can offer a safe place to store and share documents. It should support various file formats, including PDF, Word, Excel and more. It should also have a search and browse feature as well as collaboration tools and file sharing. It should also support drag-and-drop uploads with multiple security levels and a built-in viewer. It should also be compatible with all major browsers and mobile devices. SS&C Intralinks is a good option as it comes with an effective collaboration tool as well as an intuitive user interface. It offers a no-cost version that gives users up to 10GB of storage space and 250 MB of upload limit and is compatible with Android and iOS devices. It also offers security features such click to find out more as AES 256-bit encryption as well as ISO 27701 certification.
