If a company decides to invest in a business they conduct due diligence. This includes reviewing the documents of the company in addition to checking references and searching for hidden details. Due diligence software assists companies manage the process. It allows them to centralize and document processes such as assessments, financial diligence, and environmental social, corporate, and governance (ESG).

For example, if you are conducting a tech due diligence, the person performing it will need all your documentation for your product such as architectural diagrams, tech solutions and integrations, backup and recovery, servers and the process frameworks that were used to create the product. Making sure that all of this is documented will accelerate the process and decrease the risk associated with a potential deal.

Tax examinations are a different typical due diligence procedure where the buyer examines the tax profile of the target company. It can reveal tax liabilities, such as understated net operating losses and tax expenditures that are not reported and exposures to use and sales tax. It can also uncover tax deductions that are not reported and credits.

One of the most effective tools for due diligence is a virtual data room which provides a secure space to store and share files. It should have the ability to support formats for files like PDF, Word, Excel and many more. It should also include an option to search and browse along with collaboration tools and file sharing. Additionally it should permit easy drag and drop uploads as well as multiple levels of security, and an integrated viewer. It should also be compatible with all major browsers and mobile devices. SS&C Intralinks is a good option as it comes with a powerful collaboration tool and an intuitive user interface. It has a free version that has up to 10GB storage and a 250MB upload limit. It is compatible with Android or iOS devices. It also comes with security features such as AES 256 bit encryption as well as an ISO 27701 certificate.