Due diligence is performed by a firm before investing in a company. This involves going over the company’s documentation, checking references and examining for any hidden information. Due diligence software assists companies manage the process. It allows them to organize and document processes such as assessments, financial diligence, environmental, corporate governance, and social (ESG) diligence and more.
If you’re performing due diligence on technology that person performing it will need your entire documentation for your product. This includes architectural diagrams, tech solutions and integrations backup and recovery servers, and process frameworks used to create the product. This documentation can help speed up the process, as well as reduce the risks associated with potential deals.
Tax examinations are another typical due diligence procedure where the buyer examines the tax profile of the targeted company. This can uncover tax liabilities, including excess net operating losses, underreported tax expenses, and exposures to tax on sales and use. Furthermore, it is able to determine tax credits that aren’t reported or deductibles.
A virtual data room is among the most effective tools to ensure due diligence. It can be used as a secure place to store files and share them with others. It should be able to accommodate a variety of file formats, including PDF, Word, Excel and many others. It should also include an intuitive search and browse feature, file sharing options and collaboration tools. In addition it should allow simple drag and drop uploads and 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 powerful collaboration tools and an intuitive user interface. It offers a free version with up to 10GB storage and a 250MB upload limit. It works with Android or iOS devices. It also includes security features such as AES 256 bit encryption and ISO 27701 certificate.
