Using DealRoom to Organize Resources for Due Diligence
Being an investor or buyer in a merger, acquisition or investment transaction requires thorough reviews and scrutinizing a variety of documents. This can be time-consuming particularly when parties have to review large quantities of information in a variety he said of due diligence areas, such as intellectual property, financial, and tax. To avoid confusion and reduce the possibility of missing items, it is necessary to prepare a comprehensive list of all the documents that need to be requested during the review process.
A thorough due diligence checklist can help an individual to pinpoint crucial information and ensure that all aspects of the review are considered. For example the human capital aspect of a review will look at the staff and employees, their wages, and benefits. This might include a breakdown of salaries by location of employees as well as a comparison of salaries of employees in similar roles within their field or region. The report will also examine the company's policies and procedures regarding hiring and firing compensation and incentives for employees, vacation and sick leave and any contracts and termination packages.
Many of these due diligence areas will require the involvement of experts and external consultants. To avoid delays, confusion and duplication of work, it's important to establish a deadline for the review. Using a CRM such as DealRoom can aid in this process through providing a central repository for all documents, communications and tasks to be tracked.