Upcoming Webinar:
Top 10 Best Practices for More Successful M&A
Wed, Oct 16 – 6:00 PM CEST

4 Things to Consider When Choosing Due Diligence Software

4 Important Due Diligence Software Factors

Whether you are shopping for due diligence software for M&A or other data sensitive realms, there are four central areas to consider:

  1. Security
  2. Ease of Use
  3. Cost
  4. Opinions of Industry Insiders


Diligence management is essential for a deal to run smoothly and effectively. Teams need to know that their information is stored in a highly secure environment. Diligence management software should include a specially encrypted cloud-based hosting service; aka top of the line security.

Specifically, you want a software that not only has customizable file access privileges, but also is ISO 9001 / ISO 27001 compliant and boasts strong encryption methods. It also should have additional certifications such as

  • SOC 1/SSAE 16/ISAE 3402 (formerly SAS 70)
  • SOC 2 Type II (formerly SAS 70 Type II)
  • HIPAA/ITAR compliant
  • DOD CSM Levels 1-5
  • PCI DSS Level 1
  • FIPS 140-2
  • MTCS Level 3

DealRoom is one such diligence management software that meets all of these security features.

Ease of use

After security, ease of use should be considered because you don’t want to spend time learning complex software when you should be focusing on your business. Since there are many people involved in the due diligence process, the software you chose must have convenient on-boarding and trading.

Software such as DealRoom, assign a customer success manager to walk new members through the platform and can be contacted for any additional questions. Rooms can be spun up within minutes, and the diligence process gets going without any barriers.

The Cost of Diligence Data Rooms

Traditional VDRs are notorious for hidden fees.

You will want to investigate whether your VDR will charge by usage (per page or per GB) or by flat fee. VDRs that charge by usage can make financial planning a nightmare.

Diligence management software with a flat-rate eliminates the guessing game that per-page (or per user and per GB) pricing options create. However, with a flat-rate, you’ll want to learn what support and features are built into the cost. The more transparent, the better.

What Industry Insiders Have to Say

Finally, we recommend exploring the companies that have used the diligence management software and soliciting feedback from them.

DealRoom, for example, is one of the top diligence management software for M&A, and the only one designed upon Agile principles, and has been utilized by top legal, pharmaceutical, and real estate companies.

Due Diligence Data Room Providers vs Traditional VDRs

Diligence management data rooms need to be efficient, collaborative, and innovative, while also being safe and secure. Overall, using a diligence management software versus a traditional virtual data room saves time and money.

Top Data Room Providers for Due Diligence

Today, there is a wide selection of data room providers and sometimes it may be difficult to choose one over another. Luckily for consumers, there are plenty of software review sites that feature honest feedback from real users. Popular review sites such as G2Crowd, Capterra, TrustRadius, and Serchen are widely trusted in the finance industry.

Due Diligence Data Room Checklist When Picking Your Provider

• High Level of Security. Including watermarks, IP restriction, multi-factor authentication, etc

• Free Trial to test it Out

• Data Center Storage that is not outsourced

• Client lists, what are your top competitors using?

• 24/7 support

Be sure to also check out a diligence management comparison to check out how various provides measure up to each other.

due diligence software free trial

Useful Links

Virtual Data Room Pricing

Virtual Data Room Security

Innovative Virtual Data Room

Buy-Side Due Diligence Software

REcommended articles