When a firm decides to invest in a business they conduct due diligence. This involves reviewing the company’s records, confirming references and looking for hidden information. Due diligence software assists companies manage the process. It allows them to document and centralize procedures like assessments, environmental, financial social and corporate governance (ESG) diligence and more.
For instance, if are conducting a technology due diligence, the person performing it will need all your documentation for your product, including architectural diagrams, tech solutions and integrations such as backup and recovery servers, and the process frameworks used to develop the product. The documentation of all this will accelerate the process and reduce the risks associated with a potential deal.
Tax examinations are another common due diligence procedure, in which the acquirer examines the tax profile of the targeted company. This could reveal tax liabilities such as excess net operating losses, underreported tax expenses, and exposures to sales and use tax. Furthermore, it is able to identify unreported tax credits and tax deductions.
One of the best tools for due diligence is a virtual data space that provides a secure space to save and share files. It should be able to support a variety of file formats including PDF, Word, Excel, and others. It should also come with an intuitive search and browse function, file sharing features and collaboration tools. In addition, it should allow for easy uploads via drag and drop, various levels of security, and an integrated viewer. It should also support 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 comes with a free version that can provide up to 10GB of storage space and 250MB of upload limits and is compatible with Android and iOS devices. It also offers security features such as AES 256-bit encryption and ISO 27701 certification.
