The analysis of 40,000 business transactions over four decades reveals that approximately 70% to 90% of M&A deals fail, often because of ineffective due diligence. When critical information is overlooked or poorly organized, even well-intentioned deals can fall apart.
Due diligence is more than a checklist. It’s a complex process that involves evaluating risks, reviewing financials, assessing legal documents, and coordinating with multiple stakeholders. Managing all of this manually is not only time-consuming but risky. That’s where due diligence software comes in.
This article explains what M&A due diligence software is, how it works, and what features to look for. You’ll also find a breakdown of key industry use cases and a detailed comparison of the ten best due diligence software solutions to help you choose the right platform.
Ideals
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Dealroom
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Citrix
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Box
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
Intralinks
- Access controls
- Built-in viewer
- Full-text search
- Auto-indexing
- Customizable branding
- Advanced Q&A
- In-app live chat support 24/7
- 30-second chat response time
What is M&A due diligence software?
M&A due diligence software is a digital platform that helps companies manage, store, and securely share documents during mergers and acquisitions (M&A) processes. It streamlines the due diligence phase by providing tools for document storage, user access control, real-time collaboration, and activity tracking. That’s why it’s often referred to as a due diligence data room.
Here’s how this software revolutionizes due diligence efforts:
- Virtual data room. Due diligence software for business offers a secure virtual data room where you can effortlessly upload and manage all of your sensitive documents. It provides a central repository for secure storage and easy access with efficient document management.
- Collaborative environment. With due diligence software, collaboration becomes effortless. You can invite relevant participants, including third parties, buyers, and bidders, into the virtual data room. This allows them to access, review, and download necessary documents.
- E-signature capability. To expedite document approvals and agreements, the platform includes an e-signature feature. This allows stakeholders to sign off on documents remotely, reducing delays and ensuring a seamless transaction.
- Q&A tools. The due diligence workflow incorporates intuitive Q&A tools that enable effective communication and clarification between parties. This ensures that any queries or concerns are promptly addressed, eliminating ambiguity and minimizing risks.
- Document protection. Diligence workflow prioritizes sensitive data security. In this case, watermarking is used to protect confidential documents and prevent unauthorized access.
Key features of due diligence software
Key features of the best due diligence software typically include:
- Access control and permission settings. Granular controls to define who can view, download, print, or edit specific documents, protecting confidentiality.
- Audit trails and activity tracking. Detailed logs of user actions, including document views, downloads, and edits, for full transparency and compliance.
- Collaboration tools. Built-in Q&A modules, commenting, and real-time notifications to streamline communication between buyers, sellers, legal teams, and advisors.
- Advanced search and indexing. Powerful search functions with filters, tagging, and indexing to quickly find relevant documents or keywords within large datasets.
- Automation features. Bulk document uploads, customizable templates, automatic reminders, and workflow automation to reduce manual tasks and speed up processes.
- Integration capabilities. Seamless connection with email, CRM, project management, and other software systems to enhance productivity and maintain data consistency.
Who uses due diligence software?
To select the right due diligence software, a deep understanding of your specific business needs and industry context is essential. Due diligence processes vary widely depending on the sector and organizational goals, so segmenting your audience and carefully aligning software capabilities ensures you gain maximum value.
Industries that benefit most from due diligence software
The due diligence tool is indispensable in industries where managing complex transactions, regulatory compliance, and secure information sharing are critical. Key industries include:
- Mergers and acquisitions. These transactions involve multiple parties, vast amounts of confidential data, and strict deadlines. The platform helps streamline document management, track user activity, and centralize communication for thorough due diligence and risk mitigation.
- Real estate. The best due diligence software helps asset managers organize property titles, inspection reports, contracts, and regulatory documents, enabling smooth coordination between buyers, sellers, lenders, and attorneys.
- Venture capital and private equity. Investors rely on the due diligence solutions to evaluate startups, analyze financial statements, manage deal flow, and maintain audit trails to comply with compliance professionals’ requirements.
- Legal and consulting services. Firms leverage due diligence tools to conduct compliance checks, risk assessments, and client onboarding efficiently, ensuring accuracy and confidentiality in managing legal documents.
- Financial services. Banks and lenders use the financial due diligence software to verify borrower information, monitor possible risks, and ensure compliance with regulatory audits and diligence requests.
How to align software features with business goals
Aligning due diligence software capabilities with your strategic objectives is key to improving productivity, security, and decision quality. Consider these factors:
- Data security and compliance. Prioritize software with robust access control, encryption, two-factor authentication, and detailed audit trails to protect sensitive information and meet industry regulations, helping compliance professionals ensure compliance.
- Operational efficiency. Look for automation features like bulk uploads, customizable templates, and automatic reminders that reduce time-consuming manual tasks and accelerate review cycles, saving valuable time.
- Collaboration and communication. Effective due diligence requires clear interaction among multiple stakeholders. Features such as Q&A modules, commenting, version control, and real-time notifications facilitate collaboration between risk and compliance teams, asset owners, and potential partners.
- Scalability and flexibility. Ensure the software can handle large volumes of data, adapt to evolving due diligence activities, and support ongoing risk mitigation efforts.
- Integration with existing tools. Seamless connection with CRM, email, project management, and other data sources enhances data organization, improves data accuracy, and streamlines workflows.
- User experience and support. Intuitive interfaces reduce onboarding time, while responsive customer support and training help teams leverage the platform’s capabilities for comprehensive reports and actionable insights.
The security landscape
Running a successful business involves many security risks — from external threats like cyberattacks to internal vulnerabilities such as employee negligence, weak access controls, or outdated systems.
In fact, human error is responsible for approximately 95% of data breaches. Therefore, ensuring robust protection isn’t just about investing in secure software — it also requires continuous staff training and a company-wide commitment to best practices in data handling and access control.
However, many of the security issues that occur during due diligence can be solved thanks to the measures provided by modern due diligence software. The following includes security features that most due diligence software solutions offer:
- Document protection. Ensuring the confidentiality of sensitive information, such as financial, personal, or proprietary data, is central to the security spectrum. Due diligence data rooms offer such data protection features as dynamic watermarking, fence view, and spreadsheet viewer. Additionally, they provide encryption measures in the form of two-factor and multifactor authentication.
- Access control. Role-based access controls ensure that only authorized personnel access specific data. In turn, granular permissions ensure that confidential information is not exposed even within the organization. Modern cloud-based due diligence solutions allow specifying which documents users can view, edit, and download.
- Audit trails. Maintaining detailed logs of all user interactions within the system is crucial. It allows for accountability and transparency and offers a mechanism to trace any unintended modifications or breaches. Due diligence data room providers allow for detecting who accesses particular documents and when they do so.
- Security compliance. Modern due diligence software solutions follow global data protection regulations, such as GDPR, ISO27001, CCPA, and SOC2. These help to maintain compliance to avoid hefty fines and ensure users’ rights are preserved.
Comparing 10 due diligence software solutions
While basic virtual data rooms are primarily designed for secure document storage and sharing, due diligence software goes a step further.
A traditional VDR focuses on providing a centralized space to upload, organize, and protect files, often without broader workflow or collaboration features. In contrast, a due diligence tool includes advanced features for communication, workflow, and analytics. These tools are tailored specifically for managing the complexities of M&A, fundraising, and compliance processes.
Below, we compare the ten best due diligence solutions based on their security, usability, and deal management features.
| Provider | Key features | Monthly pricing for corporate customers | Trials |
| Ideals | Detailed audit trails 8 levels of granular permissions Advanced Q&A | Custom | 30-day free trial |
| DealRoom | DealRoom’s API Activity dashboard Activity tracking | Custom | 14-day free trial |
| Citrix | E-signature Document approval Permissions on user level | $338 | 30-day free trial for Premium users only |
| Box | Box Shield Box Shuttle Permission management | €42 | 14-day free trial |
| Intralinks | Multi-format support AI auto-indexing Integrated IRM | Custom | N/A |
| ShareVault | Document preview AI redaction Online editing | Custom | 7-day free trial |
| Brainloop | Autoversioning User authentication Brainmark ID (the digital watermark) | $25+ per user | Custom |
| DiliTrust | Board governance, contract lifecycle management, legal compliance | Custom | Free demo |
| StandardFusion | Policy management, risk assessment, audit automation | Custom | Free demo |
| Sprinto | Automated compliance (SOC 2, ISO 27001), risk monitoring | Custom | Free demo |
Now, let’s review what each provider offers in more detail.
1. Ideals
Ideals is a specialized virtual data room provider focusing on security and usability. This due diligence software product is tailored to meet the needs of professionals in M&A and other high-stakes deals. The user-friendly interface does not compromise on advanced security features. The software also integrates with existing systems, such as Windows Explorer.
Many professionals choose Ideals for its robust protective measures and commitment to scalable, efficient, and streamlined operations. Having a reliable partner like Ideals provides security and privacy during due diligence.
Ideals’ top features include the following:
- 24/7 customer support
- Spreadsheet viewer
- Automatic index numbering
- Document signing
- Secure fence view
2. DealRoom
This company was founded in 2013 with the mission of making M&A deals more innovative, collaborative, people-driven, and equitable. DealRoom is an advanced cloud-based solution designed to simplify and accelerate the due diligence process. DealRoom offers a wide range of features, including drag-and-drop file uploads, advanced permission settings, and real-time activity tracking.
The intuitive interface and collaborative tools help M&A teams centralize their information. Other available features include:
- Audit trail
- Dynamic or fixed watermarks
- Task assignment
- Team creation
- Update notifications
3. Citrix
Pioneering the frontier of digital workspaces, Citrix prioritizes the evolving needs of modern businesses. Their solutions, ranging from remote support to the popular Citrix ShareFile for secure file sharing, empower businesses to operate fluidly from anywhere. By seamlessly integrating a suite of tools, they’ve managed to reduce friction points in digital workflows. Moreover, they offer the following benefits with a 30-day free trial:
- API integration
- Three levels of user roles
- ShareFile document preview
- E-signatures
- Multi-format support
4. Box
Not just a virtual data room solution, Box has positioned itself as a linchpin in collaborative content management. By integrating top-tier security with user-friendly collaboration tools, they’ve transformed the way teams work on projects. For businesses, big or small, Box offers a platform where innovation meets organization.
Also, customer testimonials and reviews confirm the scalability features that help with risk assessment during due diligence.
If you are looking for more features, they also provide:
- Customizable access permissions
- Workflows in Box Relay
- Over 1,500 app integrations
- Box Canvas
- Browser preview
5. Intralinks
With over two decades under its belt, Intralinks has emerged as a robust provider in the virtual data room sector. Primarily focusing on M&A activities, its platform has earned its users’ trust and reliability through word-of-mouth. The blend of a user-friendly interface with uncompromising security measures means that high-value transactions are executed smoothly. Customers also point to security features in their reviews.
Look for more Intralinks’ features, including:
- API integration
- Bulk upload from the desktop
- Permission management and nine user roles
- Simultaneous shared-document management
- Two-factor authentication
6. ShareVault
Blending high-level security with sophisticated document-sharing capabilities, ShareVault is popular among industries where discretion is paramount. This platform provides controlled access and secure due diligence for industries ranging from medical sciences to legal services.
The emphasis on ensuring confidentiality while maintaining ease of use has solidified ShareVault’s reputation as a trusted partner in handling sensitive information. Many reviews confirm the high level of customer service on the platform. Moreover, ShareVault provides users with five unique features:
- Automatic numerical indexing
- Custom access agreements
- Document engagement reports
- External file sharing with security controls
- 50GB upload limit
7. Brainloop
At the intersection of technology and due diligence software, you’ll find Brainloop. This digital tool is specifically designed for collaborative work among board members and executives. It offers a secure workspace for seamless communication and file sharing. Numerous reviews affirm Brainloop’s exceptional user experience.
In an age where data breaches are a real concern, Brainloop ensures that executive communications remain confidential and efficient during due diligence. Take a look at some of the services and features that Brainloop provides:
- Operator protection
- Role-based allocation of permissions
- Bookmarks
- Cloud deployment
- Automatic folder update
8. DiliTrust
DiliTrust is a comprehensive GRC platform designed to streamline governance, risk management, and compliance processes. Trusted by corporate boards and legal teams, DiliTrust facilitates secure collaboration on sensitive documents and decision-making workflows.
Its modular architecture adapts to various organizational needs, ensuring flexibility without compromising security. Users appreciate DiliTrust for enhancing transparency and simplifying complex compliance requirements.
Key features include:
- Board portal and meeting management
- Contract lifecycle management
- Legal and regulatory compliance tracking
- Secure document sharing
- Customizable workflows
9. StandardFusion
StandardFusion is a modern GRC platform focused on simplifying policy management, risk assessment, and audit automation. With an emphasis on ease of use, it helps compliance teams reduce manual workloads and improve visibility into organizational risk.
StandardFusion supports a wide range of regulatory frameworks and industry standards, making it a versatile tool for companies aiming to maintain continuous compliance.
Core features include:
- Policy and procedure management
- Risk and control assessments
- Audit scheduling and reporting
- Vendor risk management
- Pre-built templates for common standards
10. Sprinto
Sprinto is a specialized compliance automation platform designed for fast-growing companies, especially in the SaaS sector. It automates SOC 2, ISO 27001, and HIPAA compliance workflows, reducing the time and resources needed to achieve certification.
Sprinto’s integration with popular cloud platforms and real-time monitoring provides continuous risk assessment and security posture management. Many users highlight its ease of setup and ongoing maintenance support.
Key offerings include:
- Automated compliance workflows
- Integration with AWS, GCP, and Azure
- Continuous risk and vulnerability monitoring
- Evidence collection and audit readiness
- Expert support and guidance
Key takeaways
- M&A due diligence software is a secure digital platform that streamlines managing and sharing sensitive documents during mergers and acquisitions.
- Different industries benefit from due diligence software, especially M&A, real estate, venture capital, legal services, financial services, and SaaS companies.
- Aligning software features with business goals, such as data security, operational efficiency, collaboration, scalability, integration, and user experience, is essential for maximizing value.
- Security is critical in due diligence software, with features like role-based access, encryption, audit trails, and compliance with global data protection regulations.
- The market offers various due diligence solutions, ranging from basic virtual data rooms to advanced platforms with workflow automation and collaboration tools.
- Choosing the right due diligence software depends on specific business needs, industry requirements, and the ability to support thorough risk mitigation and informed decision-making.