A start-up, venture-funded software company was growing quickly and knew that it was just a matter of time before it would undergo due diligence, either as part of a financing or potential exit event. The serial entrepreneurs running the company recognized that the traditional approach of reactively scrambling to get the company’s legal documents in order when the request landed would be costly and could cause the company to look bad in front of investors. They wanted to be proactive and run their operations in a way that were “diligence ready” at all times, and asked us for a solution that fit within the financial means of an early-stage company.
Our team designed a solution that allowed the company to identify diligence-relevant documents as they were created and route them to a single repository that was organized in accordance with diligence best practices. The solution was administered internally, keeping costs to a minimum.
Our system allowed the client to reliably and cost-effectively build a deal room of documents that made it diligence ready at all times. This meant: a list of diligence-relevant documents was established; processes were implemented to ensure that all such documents routed upon creation to central source; documents uploaded into proper section of repository; and the process managed entirely by internal personnel. As a result, an investment banker subsequently described our client as the most diligence-ready company he had ever seen.