6 Tips for Faster DD Processes
1. Include due diligence obligations in your agreements. Understand the expectations of potential customers during negotiations. Define in the agreement how information and documents will be shared in connection with regular due diligence. You will then demonstrate that you are a transparent partner and that you will be committed to helping them comply with current and future regulations.
2. Be proactive and direct customers to a "company profile" in a central database. Even if they send you a questionnaire via email, refer them to your profile in a database where you share documents related to due diligence. Explain the value by offering immediate access to information in your profile.
3. Stop chasing colleagues for the latest version of the document. Ensure that the latest versions of documents are always found in your profile. Invite colleagues to collaborate on the profile instead of sending lots of internal emails and losing track of the latest version of a document.
4. Create documents that meet the expectations of customers. Ask for feedback and focus on constantly improving the documents, as new regulations will come into force and customers will need more information to comply with the regulations they are subject to. If some of their questions are not quite right for your company or your types of services, help the customer by automatically offering other types of documents. For example, a document with frequently asked questions related to due diligence.
5. Create a policy for how you respond to due diligence. Define who will be responsible for the answers and ensure that they have the right competence and experience. Your policy should include routines for updating documents regularly. It should also specify how different departments should be involved to ensure that you share the correct information about your company.
6. Ensure that your salespeople understand the value of involving the due diligence team at the right time. An effective due diligence team can say a lot about a company's governance and risk awareness. This can be the deciding factor if customers are looking for a stable and long-term partner. What you do in terms of initial due diligence will also set the foundation for their requirements for regular due diligence.
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Verified has recently acquired GRC Watch, a digital platform that allows companies like yours to share documents and responses required for various due diligence processes.
