Due diligence is conducted by a business prior to investing in a company. This involves reviewing the company’s documents as well as checking references and looking for hidden details. Due diligence software helps companies manage the process. It lets them centralize and document processes such as assessments, financial diligence, and environmental, social, and corporate governance (ESG).
For instance, if are doing a tech due diligence, the person performing it will need all the documentation of your product such as architectural diagrams, integrations and tech solutions such as backup and recovery servers, and the process frameworks used to create the product. All of this documentation can aid in speeding up the process, and reduce the risk associated with potential deals.
A tax examination is another typical due diligence procedure where the buyer examines the tax profile of the targeted company. It can identify tax liabilities like overstated losses, underreported expenses and tax liabilities for sales-and-use. It may also uncover tax deductions that are not reported and credits.
One of the best tools to conduct due diligence is a virtual data room which can provide a secure place to store and share documents. It should have the ability to support file formats such as PDF, Word, Excel and many more. It should also offer an intuitive search and browse function, file sharing options and collaboration tools anonymous. It should also allow drag and drop uploads as well as multiple security levels and a built in viewer. It should be compatible with all major mobile devices and browsers. SS&C Intralinks is a good choice as it offers an efficient collaboration tool and an intuitive user interface. It comes with a free version that can provide up to 10GB of storage as well as 250MB of upload limits and is compatible with Android and iOS devices. It also includes security features like AES 256 bit encryption as well as an ISO 27701 certificate.
