Using Due Diligence Software to Speed Up the Due Diligence Process

If a company decides to invest in a company, they conduct due diligence. This involves reviewing the company’s documents as well as checking references and looking for hidden information. Due diligence software aids companies manage the process. By using it, they are able to document and centralize processes such as assessments environmental, financial, social and corporate governance (ESG) diligence, and many more.

For instance, if you are performing a tech due diligence, the person doing it will require all of your product documentation that includes architectural diagrams, integrations and tech solutions backup and recovery servers, and the process frameworks used to develop the product. Having all of this documented can speed up the process and reduce risks of a potential deal.

Another process used in due diligence is a tax examination which is where the buyer reviews the tax profile of the company they are buying. It can reveal tax liabilities, like understated net operating losses and under-reported tax expenses and sales and use tax exposures. Moreover, it can also determine tax credits that aren’t reported or tax deductions.

A virtual data room is among the best tools available to ensure due diligence. It can serve as a secure place to store files and share them with others. It should have the ability to support formats for files like PDF, Word, Excel and many more. It should also have a search and browse feature along with file sharing and collaboration tools. Additionally it should permit easy drag and drop uploads with multiple levels of security, and a built-in viewer. It should also work with all major mobile devices and browsers. An excellent choice is SS&C Intralinks, which offers an intuitive user interface as well as powerful collaboration tools. It has a trial version that allows up to 10GB storage and a 250MB upload limit. It works with Android or iOS devices. It also offers security features like AES 256 bit encryption as well as an ISO 27701 certificate.

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