Using DealRoom to Organize Resources for Due Diligence
Being a potential investor or buyer in an acquisition, merger or investment deal involves extensive reviews and scrutinizing loads of documents. This can be time-consuming, especially when the parties are examining large quantities of information in a variety of due diligence areas like intellectual property, financial, and tax. To avoid confusion and reduce the possibility of missing things, it is vital to compile a complete list of all materials required during the review process.
A thorough due diligence checklist will assist an individual to pinpoint important information and ensure that all aspects of the review are taken care of. The human capital component of review, for instance will analyze the employees and staff of the business including their salaries and benefits. This might include an analysis of employees based on position and a comparison of salaries with the wages of similar employees in their industry and regional. It will also examine the policies, procedures, and practices regarding hiring, firing, compensation, incentive programs, sick leave, vacation, contracts, and termination.
Many of these areas of due diligence will require the input of consultants and specialists. It is a good idea to establish a timeline to complete the review and define clear parameters to prevent delays, miscommunications, or duplicate work. Using a CRM program like DealRoom can help speed up the process through providing a central repository to manage all communications, documents and tasks that need to be streamlined.