When a firm decides to invest in a company, they conduct due diligence. 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 helps them centralize and document processes such as assessments, financial diligence and environmental, social, and corporate governance (ESG).
For instance, if you are performing a tech due diligence, the person executing it will need all of your product documentation such as architectural diagrams, integrations and tech solutions backup and recovery servers and the process frameworks that were used to develop the product. This documentation can help speed up the process, and also reduce the risk of potential deals.
A tax examination is a common due diligence procedure, in which the acquirer examines the tax profile of the targeted company. This can identify tax liabilities like overstated losses, under-reported expenses, and sales-and-use tax exposures. Additionally, it could determine tax credits that aren’t reported or tax deductions.
A virtual data room is among the best tools you can use for due diligence. It can be used as a safe place to store files view and also share them with others. It should be able to support file formats such as PDF, Word, Excel and more. It should also include the ability to search and browse, file sharing and collaboration tools. It should also allow drag and drop uploads as well as multiple security levels and a built-in viewer. It should also work with all major browsers and mobile devices. A good choice is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It has a trial 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 certificate.