If a company decides to invest in a business, they conduct due diligence. This involves reviewing the company’s documents, confirming references, and scouring for hidden information. Due diligence software helps companies manage the process. Using it, they can organize and document processes such as assessments financial diligence, environmental, social and corporate governance (ESG) diligence and other.
For example, if you are performing a tech due diligence, the person who is performing it will require all documentation on your product that includes 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 help speed up the process, and reduce the risk of potential deals.
Another typical due diligence procedure is a tax examination in which the acquirer analyzes the tax profile of the company that is being targeted. It could identify tax liabilities like overstated losses, under-reported expenses as well as tax liabilities related to sales and use. It could also uncover tax deductions and credits.
A virtual data room is among the best tools you can use for due diligence. It can be used as a secure space to store your files and share them. It should be able to support a variety of file formats including PDF, Word, Excel and many more. It should also come with the ability to search and browse as well as collaboration tools and file sharing. It should also support drag-and-drop uploads and multiple security levels and a built-in viewer. It should also support all major browsers and mobile click to investigate devices. An excellent choice is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It has a free version that has up to 10GB storage space and a 250MB upload limit. It’s compatible with Android or iOS devices. It also includes security features like AES 256 bit encryption and ISO 27701 certificate.