Using DealRoom to Organize Resources for Due Diligence
Assuming the role of a potential buyer or investor in an acquisition, merger or investment transaction requires lengthy reviews and examining a lot of documents. This can be time-consuming especially when parties have to review large amounts of information in variety of different due diligence areas, such as intellectual property, financial and tax. To avoid confusion and minimize the chance that things are not considered, it is important to make a comprehensive checklist of all the materials that must be reviewed during the review.
A thorough due diligence checklist will help anyone to discover important information and ensure all aspects of the review are considered. For example the human capital aspect of a review will take a look at the company’s staff as well as employees, their wages and benefits. This may include a breakdown according to the location of employees as well as a comparison of the salaries of individuals working in similar positions within their industry or region. It also will look into the company’s policies and procedures regarding hiring and firing linked here as well as employee remuneration, incentives and bonuses as well as sick and vacation leave as well as any contracts and segregation packages.
Many of these due diligence areas will require input from specialists and external consultants. It is recommended to set a time frame to complete the review and establish clear guidelines to avoid delays, confusion, and duplicate work. Using a CRM program like DealRoom can improve the efficiency of this process by providing a central platform for all documents, communications and tasks that need to be tracked.