Due diligence is carried out by a company prior investing in a company. This involves going over the company’s records, confirming references and looking for hidden information. Due diligence software helps companies manage the process. It helps them centralize and document processes like assessments, financial diligence, and environmental, social, and corporate governance (ESG).
If you are performing due diligence on technology, the person doing it will require all of your documentation for the product. This includes architectural diagrams, technical solutions and integrations backup and recovery servers, as well as process frameworks used to develop the product. Documenting all of this will accelerate the process and decrease the risk of a potential deal.
Another process that is commonly used for due diligence is a tax examination, in which the acquirer examines the tax profile of the company that is being targeted. This could reveal tax liabilities such as overstated net operating losses and under-reported tax expenses and exposures to use and sales tax. Additionally, it could uncover tax credits that have not been reported and deductions.
One of the most effective tools for due diligence is a virtual data room which can provide a secure place for sharing and storing files. It should have the ability to work with file formats like PDF, Word, Excel and many more. It should also offer an intuitive search and browse feature as well as file sharing features and collaboration tools. In addition it should permit easy uploads via drag and drop with multiple levels of security, and a built-in viewer. It should also be compatible with all major browsers and mobile devices. An excellent choice bitdefender threat scanner is SS&C Intralinks, which offers an intuitive user interface and powerful collaboration tools. It offers a no-cost version that offers up to 10GB of storage space and 250MB of upload limit and is compatible with Android and iOS devices. It also has security features like AES 256 bit encryption and ISO 27701 certificate.