When a firm decides to invest in a company, they conduct due diligence. This involves examining the documents of the company and examining references, as well as looking for hidden information. Due diligence software helps firms manage the process. It helps them centralize and document processes such as assessments, financial diligence and environmental, social, and corporate governance (ESG).
For instance, if are conducting a tech due diligence, the person performing it will require all documentation on your product including architectural diagrams tech solutions and integrations, backup and recovery, servers and the process frameworks used to create the product. Making sure that all of this is documented can help speed up the process and reduce the risks associated with a possible deal.
Another process used in due diligence is a tax inspection, which is where the buyer reviews the tax profile of the company that is being targeted. It could uncover click to investigate tax liabilities, such as overstated losses, under-reported expenses and tax liabilities for sales-and-use. It can also reveal tax deductions not reported as well as credits.
One of the most effective tools to conduct due diligence is a virtual data room that can provide a safe and secure location for sharing and storing files. It should be able to accommodate a variety of file formats, including PDF, Word, Excel and more. It should also include the ability to search and browse along with file sharing and collaboration tools. Additionally it should permit easy drag and drop uploads, multiple levels of security and an integrated viewer. It should also be compatible with all major browsers and mobile devices. One option is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It has a free version with up to 10GB storage and a 250MB upload limit. It works with Android or iOS devices. It also has security features like AES 256 bit encryption and ISO 27701 certificate.