Due diligence is an essential procedure for determining if the company is a great candidate for an M&A transaction. It includes an in-depth review of a company’s products including sales pipeline, finances, technology, and more. Due diligence can be a challenging process to conduct remotely.
Whether you’re looking to sell a company or raise capital, or make your business public it is crucial to be prepared for remote due diligence. Here are a few of the best practices for getting the deal completed.
Maintain a centralized data hub.
Due to the pandemic that has forced offices to stay closed and social distancing taking place the need for virtual work has become more pronounced than ever before. As a result, many investment teams are now used to working remotely, which has changed the method they conduct due diligence. The impact of the pandemic is likely to linger for a long time, but there’s no reason to let it impede any deals that are in the pipeline.
It is important to establish and follow a comprehensive agenda for every meeting that covers all the important topics. It is also essential to use a virtual service for file sharing which is geared towards security. This will reduce the possibility of sensitive data accidentally being shared with unauthorised users. This can be done by using the virtual data room, which includes features such as two-factor authentication, document watermarks and audit logs. This helps to organize the data better and increases transparency while keeping the information protected.