Due Diligence Software [Features, Ratings, & How to Pick The Right One]

A Verizon study found that a staggering 62% of data breaches originate from third-party relations. While external tools and partnerships are critical to ensuring uninterrupted growth, it is not uncommon for them to become a roadblock rather than an enabler, especially if they don’t undergo a filtering process. 

Businesses often think that onboarding vendors is easy. This wrong assumption leaves them struggling with inadequate communication, incomplete information, asking the wrong questions, and unprecedented risks. And before they know it, the due diligence process is all over the place and raises more questions than answers. And that’s precisely why you need a dedicated due diligence software to wade through the chaos.

This blog aims to equip you with the knowledge to choose the right due diligence software by analyzing the features, pros, cons, and more. 

TL;DR

Due diligence is the systematic practice of investing and evaluating the risk and compliance posture of a third-party vendor or business partner before entering into a deal. We’ve compiled a list of due diligence software based on reviews and other criteria, including Sprinto, DealRoom, Datasite Diligence Virtual Data Room, and Midax, among others.  Choosing the right solution involves evaluating key features such as security questionnaire library, vendor collaboration, dashboards, partner onboarding, etc. We explore these in more detail below.

What is due diligence software?

A due diligence software is a tool that helps automate, manage, and monitor activities and requirements around evaluating a vendor’s security and compliance posture. Due diligence processes generally involve reviewing large volumes of documents, verifying vendor claims, and analyzing their posture against expectations. 

A software adds efficiency and assists users navigate through tedious manual processes. These include conducting thorough investigations, evaluating risks, ensuring compliance, documenting processes, onboarding vendors, and communicating with business partners. 

Best due diligence software: Our top picks

While selecting a due diligence software, it is important to understand the requirements specific to your business. Most solutions offering due diligence come as part of a broader tool. This means you don’t need to buy the entire tool, but only the product you need. 

Based on user review, ease of use, features, and popularity, here’s our pick: 

1. Sprinto
2. DealRoom 
3. Datasite Diligence Virtual Data Room
4. Midaxo
5. Ansarada 
6. Diligent Boards 

Sprinto

Sprinto is a vendor risk assessment and security compliance automation software that consolidates vendor risk tracking, managing, and mitigating in one place. It offers a library of fully customizable, ready to use repositories of vendor risk management policies. The tool is built with a suite of controls and measures to evaluate vendors with high accuracy. 

Users can automate the end-to-end vendor risk management process throughout the acquisition life cycle with full control and confidence.

Features and capabilities:

• Secure your internal assets like confidential data, code repositories, cloud applications, and tools by creating a detailed inventory of vendors and their associated risks. Sprinto offers the tools and mechanisms to assess and evaluate risks throughout the vendor onboarding and offboarding lifecycle
• The tool preserves the value of existing systems and policies by building remediation machinery that clicks in place with these systems. Streamline workflows by setting rules for owners, access, protocols, and more. 
• Identify vendor risks based on type, nature, data they handle, history of breaches, and level of access
• Score vendors based on their risks and use industry benchmarks to update the scores as your vendor relationships evolve 
• Monitor your vendor environment continuously, accurately, and comprehensively, and get notified of non-compliance in real-time
• Generate real-time vendor risk reports on demand, view vendors each personnel manages and their due diligence status, and check the details of the risk assessments completed with the stakeholders

Pros: 

• Simplifies and automates vendor compliance assessment tasks that typically involve significant manual effort
• Scores vendors on their risks based on vendor type, nature of their relationship, access level, and more
• Users appreciate the ability to set up automated workflows to assess vendors
• The tiered escalation system is appraised by users for helping teams resolve issues promptly
• Simplifies navigation with a dedicated dashboard for collaborative evidence review
• Provides guided platform implementation with white-glove support from setup to management.

Cons: 

• Currently does not support on-premise infrastructures

G2 rating: 4.8/5

DealRoom 

DealRoom streamlines due diligence activities by processing requests faster by fifty percent. It helps teams organize, predict, secure, and track processes in real time. The software centralizes communication, tasks, and files in a centralized location to facilitate easy management. 

Features and capabilities:

• Manage your deal pipeline throughout its lifecycle, track collaboration progress with targets, and view all deal data using a centralized repository 
• Manage all diligence requests and tasks using a built-in project management system, store diligence documents in a centralized repository. Quickly close deals in a transparent manner using the communication hub 
• Generate detailed analytics reporting to gain actionable insights and set granular permission to sensitive deal documents based on user roles

Pros: 

• Users find it navigate and find necessary documents
•  The interface is straightforward and user-friendly
• The tool offers robust organizational capabilities
• Can be configured to specific use cases like setting granular permissions

Cons: 

• Some reviews mention the inability to download documents directly from the platform
• The login process could be improved, as it doesn’t allow storing credentials for easier access
• Zooming into documents can be buggy on some laptops and users mention the preference of downloadable PDFs

G2 rating: 4.3/5

Datasite Diligence Virtual Data Room

Datasite Diligence Virtual Data Room uses machine learning models to optimize the deal making process. Users can accelerate and automate activities associated with deal closures by easily navigating through the complexities with confidence and efficiency. 

Features and capabilities:

• Easily organize content using the drag and drop feature, manage request lists using the virtual data room, and expedite content preparation process using bulk edit tools 
• Leverage AI to categorize, index, and translate content, find personally identifiable information (PII), manage redactions, and estimate revenue using a mix of algorithms 
• Centralize and upload diligence checklists using pre-built templates, create filterable questions, and view risks directly in the documents to minimize diligence surprises
• Get real-time updates on deal progress and buyer engagement, manage reporting from a single source of truth, and gain insights into buyer behavior by tracking market dynamic data

Pros: 

• Users appreciate the ease of moving files around and a simple permissions system
• The Analytics tab is helpful in providing insights into competitive dynamics
• Offers robust security for confidential documents with automated watermark and analytic reports

Cons: 

• Lacks the ability to set permission for bulk documents 
• Users reported the lack of transparency on the cost each month and data on how the bill is charged in the portal

G2 rating: 4.5/5

Midaxo

Midaxo is cloud-based M&A and automated due diligence software that helps manage and evaluate deal risks. Teams can use the due diligence module to expedite time closure and evaluate risks associated with new vendors. The platform consolidates documents, records, plans, communications, and project status in a single, easy-to-access system. 

View and manage the deal pipeline using powerful data enrichment and CRM capabilities. Source: Mixano

Features and capabilities:

• Optimize costs by consolidating siloed systems, disjoined communications, scattered workflows, and multiple tools using a virtual data room (VDR). Boost efficiency, improve decision-making, and make the right decisions throughout the diligence lifecycle
• Get a single source of truth for all evaluations, reviews, and investigations. Track deadlines, ongoing tasks, and assigned roles in one location
• Access due diligence playbooks developed to fit specific use cases. Add best practices, guidance, and templates to create a custom playbook library that reflects your deal type, problems, and analysis. 
• Real-time reporting and analytics offer deep insight into project progress, workflows, and the latest deal metrics. One-click reports and pre-configured dashboards enables consistent reporting

Pros: 

• Users find it easy to respond to requests, upload required diligence materials, and track communications from single dashboard
• Offers a single KanBan view to for all pipeline deals across various stages
• Allows users to customize each stage of review aligned with historic deal stage terminology

Cons: 

• The user management system is often cumbersome and can be counterintuitive in some cases
• The basic reporting could be improved to include common KPIs

G2 rating: 4.8/5

Ansarada 

Ansarada is an AI-powered dealmaking and collaboration software that offers AI insights, advanced automation capabilities, and customizable workflows for M&A. It enables teams to save time, optimize cost, minimize risks, track deal progress, and protect deal reputation using a single dashboard. 

Features and capabilities:

• Enables companies of all sizes to to streamline their due diligence process by using robust document protection and monitoring capabilities
• Prepare sufficiently for deals by identifying, flagging, and addressing risks at the early stages before disclosing sensitive information to the involved third parties
• Quickly surface relevant data using integrated project management and collaboration tools. Use digitized workflow templates to load documents faster 
• Transfer data to AI-powered virtual rooms for patterns and contractors to securely access. Use the due diligence questionnaire software that tracks questions 

Pros: 

• The intuitiveness of the tool allows users to focus on their work instead of figuring out how the tool works
• Users appreciate the robust encryption and access controls that helps to handle sensitive information
• Users appreciate the prompt, helpful, and effective customer support
• The Q&A feature streamlines communication with stakeholders, making it easier to manage deals

Cons: 

• Some users feel that the platform is on the expensive side compared to alternatives
• The reporting feature can use some improvements like tracking document changes and uploads
• Some users reported issues with the bulk edit function not working as expected

G2 rating: 4.6/5

Diligent Boards 

Diligent Boards enables teams to collaborate effortlessly and securely with third party vendors. They offer a suite of due diligence tools that helps teams filter out risks from the watchlist, monitor and identify media based risks, and gather intelligence to proactively mitigate vendor risks. 

Easily manage agendas, annotations, documents, discussions of board meetings, and board meeting minutes quickly and securely. Source: Diligent Boards

Features and capabilities:

• Comprehensive reporting capabilities using expert research to evaluate risks related to beneficial ownership, corrupted practices, ESG, and more based on insights from global analysts
• Ensure compliance by conducting thorough due diligence that covers local investigations, criminal history, financial records, and ownership review. Verify all aspects through site assessment verification 
• Maintain a centralized library of all vendors that covers onboarding, performance monitoring, remediation, and assessment review for integrated risk management
• Assess, monitor, and mitigate risks associated with third parties by automating and centralizing risk assessments for existing and new vendors. Use configurable and custom reporting capabilities to make informed and data driven decisions

Pros: 

• Users can quickly build board books, create repositories, and update items on the fly
• The customer support team is prompt and helpful in their responsiveness 
• The tool is easy to navigate and does not require technical expertise to operate
• The collaboration features are seamless, improving efficiency and productivity

Cons: 

• The mobile application is buggy and does not operate seamlessly
• The password recovery/reset can be improved
• Can be costly for smaller organizations and startups

G2 rating: 4.4/5

What should you consider when choosing due diligence software?

If you are looking for a due diligence platform, look for features like a centralized dashboard, questionnaire templates, easy collaboration, partnering progress, and vendor risk assessment. Let’s understand these features: 

1. Security questionnaires: One useful way to evaluate your vendor’s posture is to share a questionnaire and review it to check how it meets your expectations. The due diligence software should have a library of pre-built templates that can be used to evaluate all types of vendors. 
2. Easy collaboration: A robust communication system is crucial to eliminating multiple rounds of to-and-fro between you and your vendors. Some advanced collaborative systems allow vendors to upload their evidence for subsequent management review.
3. Partnering progress: When you onboard multiple vendors, it is not possible to track their progress and status manually. Your tool should have a single dashboard that allows you to view the relation status, business risks, diligence progress, issues, and more. 
4. Risk assessment: Adding new tools and technologies to your existing setup adds new risks to the ecosystem, which is why it is essential to manage the risks they can bring proactively. A risk assessment module helps you identify, mitigate, and manage security and compliance risks effectively. 
5. Centralized dashboard: Due diligence activities involve reviewing and managing multiple processes simultaneously. If these are siloed rather than being consolidated into a single view, contextualizing becomes a challenge. Your due diligence software should have a single dashboard that can be used to manage and view all processes at once. 

View vendor risks and manage diligence from one place

Vendor due diligence is not a mere formality or a box to tick. For SaaS companies, due diligence is crucial to maintain operational integrity, support growth, and strengthen defenses against potential vulnerabilities. 

Sprinto’s security and compliance automation solutions give your organization clear insight into a vendor’s cybersecurity posture through continuous entity-level monitoring. From a single dashboard, you can implement security controls in real-time and ensure compliance across the organization. 

Want to take the first step? Contact our experts to learn more.

FAQs

What is the cost of a due diligence platform?

The cost of a due diligence platform varies based on features, AI capabilities, scale, and more. It typically ranges from $5,000 to $50,000 per year. Custom solutions for larger enterprises can exceed this range, depending on specific requirements and integrations needed.

What is the best due diligence platform for small to medium-sized businesses?

Some of the best due diligence solutions for small to medium sized businesses are Sprinto, DealRoom, Datasite Diligence Virtual Data Room, Midaxo, Ansarada, and Diligent Boards.