Due diligence is performed by a business prior to investing in a business. This involves going over the company’s documents, verifying references and examining 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 instance, if are doing a tech due diligence, the person performing it will require all the documentation of your product that includes architectural diagrams, tech solutions and integrations backup and recovery servers, and the process frameworks that were used to develop the product. All of this documentation can aid in the speed of the process, and reduce the risk associated with potential deals.
Tax examinations are another common due diligence procedure, where the buyer examines the tax profile of the target company. This can uncover tax liabilities such as understated net operating losses as here are the findings well as tax expenses that are not reported and exposures to tax on sales and use. It could also reveal unreported tax deductions and credits.
One of the best tools for due diligence is a virtual data room that provides a secure space to store and share documents. It should support multiple file formats, including PDF, Word, Excel and many more. It should also offer an intuitive search and browse feature along with file sharing capabilities and collaboration tools. In addition, it should allow for easy uploads via drag and drop with multiple levels of security, and a built-in viewer. It should also be compatible with all major browsers and mobile devices. SS&C Intralinks is a good option, since it provides an effective collaboration tool as well as an intuitive user interface. It comes with a free version that provides up to 10GB of storage and 250MB upload limit and is compatible with Android and iOS devices. It also comes with security features such as AES 256-bit encryption and ISO 27701 certification.