Using Due Diligence Software to Speed Up the Due Diligence Process
If a company decides to invest in a business, they conduct due diligence. This involves reviewing the company’s documentation, checking references and looking for hidden information. Due diligence software can help companies manage the process. By using it, they are able to document and centralize procedures like assessments, environmental, financial, corporate governance, and social (ESG) diligence and more.
For instance, if are doing a tech due diligence, the person doing it will require all your documentation for your product including architectural diagrams tech solutions and integrations, backup and recovery, servers and the process frameworks that were used to create the product. All of this documentation will assist in speeding the process, as well as reduce the risks associated with potential deals.
A tax examination is a typical due diligence procedure that is where the acquirer looks at the tax profile of the targeted company. It can uncover tax liabilities, such as excessively reported losses, underreported expenses, and sales-and-use tax exposures. Additionally, it could identify unreported tax credits and deductibles.
One of the best tools for due diligence is the virtual data room, which can offer a safe place to store and share files. It should be able to work with file formats like PDF, Word, Excel and many more. It should also feature the ability to search and browse as well as file sharing and collaboration tools. In addition it should allow easy uploads via drag and drop with various levels of security, and an integrated viewer. It should support all major mobile anonymous devices and browsers. SS&C Intralinks is a good option as it comes with an effective collaboration tool as well as an intuitive user interface. It has a free version with up to 10GB storage space and a 250MB upload limit. It’s compatible with Android or iOS devices. It also offers security features such as AES 256 bit encryption as well as an ISO 27701 certificate.