Secure data room for due diligence platform

due diligence platform

Due diligence automation is a necessary solution for modern companies. Of course, data growth and routine tasks will not go away, but with a data room, you will transfer the implementation of similar procedures to specialized software. So, how does it work?

A virtual data room in due diligence

It is generally accepted that due diligence of investment projects takes place exclusively in the legal field. It is not true. More and more potential buyers are interested in the pedigree of the business, its leader, and its inner circle. In other words, reputation interferes with the success of the transaction.

Due diligence is a complete and comprehensive business verification. Therefore, different customers pay attention to various aspects of the company. Most often, it is ordered by investors in order to assess the attractiveness of a potential asset: business, real estate, land, etc. This procedure helps to obtain objective information about the financial condition of a potential partner, his creditworthiness, etc., and thus reduce the risks of a planned transaction.

The work of the due diligence procedure can be conditionally divided into three interrelated parts:

  • assessment of the investment object;
  • audit of the accounting system and reliability of reporting and financial analysis, analysis of tax risks;
  • legal expertise of risks, analysis of constituent and title documents.

If you decide to resort to the due diligence procedure before concluding a deal, it is best to discuss with your partner in advance all the nuances of its implementation and sign an agreement. Organizing a secure virtual data room is another step that is an obligatory moment in every deal. According to, t is a cloud-based security platform that provides a well-protected data warehouse and shared workspace for cooperation on business-critical documentation.

How can a virtual data room simplify the due diligence procedure?

The data room solution meets the desire of a seller to make the necessary documents available to potential buyers for an examination as discreetly as possible and the need to make the group of participants as broad and international as possible to achieve correspondingly high sales proceeds.

With the help of the data room, the necessary and important cooperation between these participants can be facilitated across time and location boundaries. The short-term construction of such a digital data room that is possible with the help of this technology and the ability to make current content available to all parties with access rights at the same time often leads to a significant reduction in the due diligence process.

The data room for due diligence stores all electronic documents digitally, centrally, and in an audit-proof manner. In addition, with this management system, documents can be organized over their entire life cycle, and complex processes such as individual workflows and individually configurable access concepts can be implemented.

Digital customer files, personnel files, or contract files structure and organize the correct information on the relevant business transaction. With the help of the data room management system, data and documents can be compiled using predefined and customizable classification criteria and file structures and adapted to existing work processes. As a result, they ensure more transparency, better communication, and easier teamwork. You can access due diligence files from anywhere, and everyone involved is always on the same level of knowledge.

In addition, the digital data room keeps track of the different versions of a document by adding timestamps to the document and storing the editor. It means that all changes to a document can be completely traced, and the user always has the most recent version.