If a company decides to invest in a company they conduct due diligence. This involves reviewing the company’s documentation, checking references and examining for any hidden information. Due diligence software helps firms manage the process. Using it, they can document and centralize procedures like assessments, financial diligence, environmental social and corporate governance (ESG) diligence and others.
For example, if you are doing a tech due diligence, the person performing it will need all your documentation for 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, as well as reduce the risk of potential deals.
Tax examinations are a different regular due diligence process that is where the acquirer looks at the tax profile of the targeted company. It can reveal tax liabilities, like overstated net operating loss, underreported tax expenses, and exposures to tax on sales and use. Additionally, it could identify unreported tax credits and deductions.
One of the best tools for due diligence is a virtual data room which can offer a safe place for sharing and storing files. It should be able to support a variety of file formats including PDF, Word, Excel and many others. It should also come with the ability to search and browse, file sharing and collaboration tools. In addition it should permit easy drag and drop uploads as well as multiple levels of security and an integrated viewer. It should also be compatible with all major browsers and mobile devices. The best option is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It offers a free version with up to 10GB storage he has a good point and 250MB upload limit. It is compatible with Android or iOS devices. It also has security features like AES 256-bit encryption as well as ISO 27701 certification.