It's a fallacy when others say there are "no shortcuts" in financial due diligence. Although cash flow, management tenure, partnerships and competitive landscape have to be analyzed thoroughly, the diligence data collection and amalgamation process can be made much more efficient.
Unfortunately, the diligence evaluation process is often mired in an ad-hoc due diligence process that depends on emails, Excel and Word files, PDFs and other attachments. More complications ensue when firms have to distribute and coordinate due diligence data to their internal and external stakeholders. These inefficiencies often shackle the firm, especially when tracking, auditing and reporting are needed. Multiple questionnaires types and version control of their content can further exacerbate an inefficient process.
From an auditing perspective, when questions arise, all communications between the two (or more) parties may not be captured, which is problematic. For many firms, this flawed financial due diligence process detracts from the more important financial, operational and other diligence analysis.
Thankfully, there is a better way. If you perform financial due diligence on a regular basis, CENTRL's Assess360 is designed to vastly improve the efficiency of your due diligence process. You can now focus on the due diligence content and analysis, not the process. Assess360 allows you to upload your own questionnaire, checklist or template, or choose from any of Assess360's library of standardized questionnaires, checklists and templates (including the ILPA and AIMA questionnaires).
With Assess360, each file can be shared with specific internal and external stakeholders without the need for emails, attachments or coordinating communications and documents. Also included in Assess360 are the controls and tools for grading scales, process monitoring, audit trails and a wealth of reports that inform you of the status of your financial due diligence process on demand. The most notable aspect of Assess360 is its single and shared repository architecture. To ensure accuracy and simplicity, your firm and third-party investment opportunity work on the same CENTRL application using only one set of data. The net result is one, cohesive set of documents (there is no cost for the third-party use of Assess360) and a more diligent due diligence process.