Due Diligence Services

Due Diligence as a service is the process that assesses the risk and reward of a potential deal. It can include the acquisition or sale of a company, a merger with another company, or the disposal of assets through divestment. The information gathered during the Due Diligence service should provide a detailed picture of the target company's position and ensure that all facts are known before the transaction is agreed upon.

Due Diligence as a service also involves examining and discussing financial, operational, and legal factors, including environmental, diversity, and inclusion factors.

Due Diligence is required after an agreement has been done in principle, but before any contracts are signed or the deal is completed. The results of the Due Diligence services period should determine whether the deal can go ahead as planned, whether any negotiations need to be renegotiated first, or whether the deal should be canceled.

Due Diligence as a service has several essential principles. It includes different responsibilities, like:

• Consistency between the framework and the guidelines
• Compliance with international human rights law
• Justified based on policy

As a supplier, we take our Due Diligence services seriously and prevent as many potential problems as possible. A dry test, courtesy of a proven consultant, will put the business under the microscope in a much more favorable environment than a real-life scenario where every mistake, omission, or surprise is potentially money out of the supplier's pocket. But for those who prefer more hands-on training, consider these three ideas:

Be objective. Look at your business from the buyer's point of view and be prepared to identify any apparent flaws.

Centralize your information. Having all documentation and information in one central repository makes the Due Diligence service smoother.

Check for signatures. Outdated or unauthorized contracts are essentially worthless for Due Diligence, especially if they are to be transferred to a new owner.

During Due Diligence services, we collect financial, operational, and legal documentation and information that helps us better understand your business, confirm our proposed valuation, provide legal documentation for the deal, and plan your business's integration with Relevant Software. Business Due Diligence services have both quantitative and qualitative aspects and can take 6 to 12 weeks, depending on the complexity and size of the business. Although all processes are different, gathering information and responding to inquiries takes a long time while you continue to do business. It's not easy, but it's part of any sales process, and it's worth the effort to achieve a successful closing.

It's enough to have a virtual data room or deal room. It's an online environment that securely stores, shares, and views documents and files in the cloud. Typically, data rooms are used in the Due Diligence phase of the M&A (Merger and Acquisition) process. The room contains all the documentation buyers and sellers need to review the company's assets and liabilities before the deal is closed, renegotiated, or terminated.

However, data rooms are also designed for other tasks, including project management and fundraising. As a result, two-factor authentication and other security measures provide the highest level of protection, ensuring that documents and files are only accessible to those with assigned permissions.

A good data room provider should help you get up and sprint; at least, we at Relevant Software take care of the basics and leave you to focus on the deal when providing Due Diligence services.

However, if you'd like to do it by yourself, create a virtual data room, you can set up a virtual data room in 4 steps:

• Define characteristics and price: When choosing your virtual data room provider, see what’s the size of the data room (file storage requirements) you will need, security and protection protocols such as two-factor authentication and ISO 27001:2013 and SOC 2 certifications
• Create an Index Folder Structure: Set up index folders ready to upload documents. Some, like Admin control's folder wizard, save time by doing the setup to choose one of the template folder structures or create your own.
• Add users and set access permissions: Data room administrators must set permissions for all other users. For example, restricting access to specific documents or folders can be significant, as can controlling who can read, download, or print information in the data room.

Upload documents and assign tasks: It's time to add documents and assign any reading tasks to the team. However, it can also be time-consuming, so look for a data room with features to speed up the process, such as Admin control's bulk download tool.

To provide Due Diligence services, we use an hourly pricing model and include time and materials spent to finish the task for you. The price differs for each client because we consider factors such as time and human costs for the project's production (that is, how many specialists and the time it was necessary to spend on your task. The price per hour of work is fixed for each specialist. We issue a check every two weeks.

After over 9 years of working with clients and performing various tasks and projects, including Due Diligence as a service, our list of work with industries is quite long.

• Fintech
• IoT
• Real estate
• Logistics
• Healthcare
• insurance
• Energy sector
• Agriculture
• Retail
• Construction
• Travels

Starting cooperation with Relevant Software for business Due Diligence services is quite simple and comprises several stages:

• Contact us. Tell us about the tasks you want to solve and what goals you set for your project.
• Choose specialists that the Relevant team can provide you with.
• Sign a cooperation contract and NDA with us, where we will define the main stages, working conditions, and pricing policy.

Keep in touch with Relevant project managers and team leads to find out about the execution of work on your project.

Relevant Software has project managers or team leaders for each project. They prepare a weekly report for you on the work done. You can exchange messages via e-mail or add managers to any convenient messenger, communicate with them there, and ask questions that interest you. And the third solution includes the ability to monitor the work process through the task manager tool independently. We at Relevant Software use JIRA. This task manager shows all levels of analysis or development of your project.

Our team's approach to Due Diligence as a service combines deep experience with deep data analysis knowledge to focus on the facts and how you should respond to them. We don't just tell you what's wrong; we give you advice on how to solve any problems best.

Our team understands how each business area interacts with and impacts the other, and we make these connections in our reports. When we identify problems, we can also help solve them, for example, if we identify a financial problem, we can consult with our operations team and try to find a solution. In each case, we'll provide you with the most important things to do after closing to inform your investment strategies and help you move forward, or we can help you decide whether you should exit the deal entirely.

The Due Diligence services start with a standard checklist of data that should be requested from a company for sale. It includes things you might think of, like historical financial and legal documents. Still, it should include less common items like IRS Form 5500, excise tax returns, workers' compensation claims, and more. There are dozens of these points to cover, and your due diligence Service Provider should track and verify each in an encrypted data room. We also check these documents against each other for consistency. For example, a balance sheet that does not match a tax return may indicate that financial figures have been adjusted retrospectively.

There are several key Diligence services:

• Financial verification. We'll help you identify the risk. Quality of Earnings (Q of E) analysis uses our historical industry information to clarify the potential risk of a transaction and better understand a company's proper financial performance.
• Operational check. We focus on crucial operational value drivers and risk areas to help you hone your investment case, decide how to evaluate the operational changes in your transaction, and position you for post-closing execution.
• IT Due Diligence. This service helps enterprise value creation by highlighting risks and recommending IT projects to support the business. We define projects after closing and help establish budgets, timelines, and priorities to help you advance your investment case quickly.

ESG due diligence. Environmental, social, and governance (ESG) practices help identify concerns, risks, and opportunities related to governance, human capital, environmental policy, and more.