Applies to: Deal team and target team
This article explains the diligence tracker in corporate development and private equity acquisition deals.
Diligence tracker
The diligence tracker allows buy-side teams and target organizations manage diligence item requests, responses, supporting documents, reviews, and conversations throughout the deal in one place.
The key benefits of diligence tracker are:
- Centralized diligence management
- Shared visibility between deal and target teams
- Reduced manual tracking
- Improved collaboration
- Faster request resolution
Deal team administrators can import or create diligence item, assign reviewers and target owners, and dispatch multiple items at the same time. Each request includes its own priority, due date, status, documents and collaboration thread.
Target team members can upload documents and respond to questions directly against each request. Documents, responses and conversations stay linked to the relevant diligence item.
Deal teams can monitor items as they move through Email Pending, Open, Under Review, Ready for Review, and Complete. Deal team administrators can also reopen completed items, send due date reminders, update due dates, and manage assignments.
Deal team members and target team members can only view and manage the items, documents and conversations they have permission to access.
How diligence tracker works
Diligence tracker in DealCentre AI typically follows this lifecycle:
- Deal administrators create or import diligence requests.
- Requests are assigned to target users.
- Target users upload documents and provide responses.
- Deal administrators review submitted documents and collaborate with target users.
- Requests progress through defined statuses until completed.
Diligence activities and responsibilities by team
The following actions can be performed by the deal team and target team for the diligence tracking process.
Deal administrators can:
- Create or import diligence requests
- Assign target users
- Assign reviewers
- Initiate the diligence process
- Collaborate with target team using comments
- Monitor diligence item progress
- Review responses
- Review submitted documents
- Complete diligence item requests
- Reopen diligence item requests
Target administrators can:
- View all diligence item requests
- Coordinate responses
- Reassign requests
- Upload documents
- Collaborate with deal team and target members using comments
Target team members can:
- View assigned diligence item requests
- Upload requested documents
- Collaborate with deal team and target team using comments
Statuses
The Status column for the diligence items shows the current stage of an item. There are five main statuses.
- Email Pending: The diligence item is not sent by the deal team to the target team yet.
- Open: The diligence item is sent to the target and is awaiting their response.
- Ready for Review: A response or document has been submitted and it needs to be reviewed.
- Under Review: The submitted documents and messages are being reviewed.
- Completed: The deal team has completed the review and closed the diligence item as it needs no further action.
Note: The Waiting For column shows which team needs to take action on the diligence item. When the Waiting For column shows Deal Team, the target team sees the diligence item Status as Under Review and the deal team sees it as Ready for Review. If a completed diligence item is reopened, the deal team sees the diligence item Status as Under Review and the target team sees it as Ready for Review.