What is a due diligence checklist?
A checklist is an essential tool in the due diligence phase. It helps the acquiring company ensure that all required information is available for decision-making, while enabling the target company to organize and present critical documents. Traditionally managed via Excel files shared over email, checklists often create inefficiencies, such as version confusion and redundant updates.
The due diligence checklist feature eliminates these challenges by enabling admins to upload, edit, and manage their checklists directly within the project. This centralization fosters streamlined collaboration, real-time updates, and enhanced confidence in the process.
Key benefits of the VDR checklist feature
Seamless integration of checklists: upload your existing XMSL checklists into the VDR without conversion, preserving familiar workflows.
Live collaboration: Make real-time edits directly within the VDR, ensuring all stakeholders are working with the latest version.
Centralized management: Maintain a single source of truth for the checklist, eliminating the need for re-uploads or external file sharing.
Granular control: Assign View-only or Edit permissions to specific user groups, ensuring secure collaboration.
Comprehensive tracking: All actions, such as edits, uploads, and downloads are recorded in the Audit log for transparency and accountability.
How to use the due diligence checklist feature
Step 1: Enable access to the checklist feature
Administrators can enable the functionality for other participants while setting up groups. You’ll find the setting under the Project Management section.
Permissions determine which groups can access the checklist feature. By default, the feature is disabled, and groups without enabled permissions cannot see the section.
Step 2: Add, create, and manage checklists
Administrators and other participants with appropriate permissions can create multiple checklists within the project.
Share checklists with other groups and assign specific permissions:
View-only: Users can see the checklist but cannot make changes.
Edit: Users can edit directly, as well as download and upload a new version.
Step 3: Collaborate efficiently
Participants with Edit permissions can update checklists directly within the VDR. Specifically, Edit permissions allow participants to edit, download, and upload new versions.
Changes are saved in real time and visible immediately to all authorized users.
To prevent conflicts, parallel editing is disabled, ensuring only one user can make changes at a time.
Admins may share the checklist when required using the Share button in the top right of the screen.
You’ll be met with a modal with various options:
Select the groups with whom you wish to share the checklist.
Choose the checklist permissions for the selected groups.
Opt to write a message or instructions for the selected recipients.
Once completed, press Share to confirm the selection.
The recipients will be notified about the checklist via email. This email notifies the participant that you have shared a checklist with them and gives clear instructions of how to access it. If you provided an additional message or instructions, this is also contained within the email.
Step 4: How to edit
Once you have a checklist uploaded, you will want to edit certain parts of the Excel-file. First press the Edit icon in the top right corner.
Then click into the cell you need to edit (A), use the editing bar above to type into the cell (b), and confirm or discard your editing as required (C).
Once editing mode of the cell has been exited, you are free to either finish your editing by either discarding changes (by pressing Discard) or updating the checklist (by pressing Update).
⚠️ To ensure all changes are saved, it is absolute vital this final step is taken and you press the Update button in the top right corner. Otherwise the checklist will not be updated with your changes and navigating away from the page will mean your changes will be lost.
The following actions are available when editing checklist directly in the project:
Editing the text in cells
Editing text styles: font, color, alignment
Adding links
Editing cell format: number, text, link, date
Resizing columns/rows
Copying/pasting content
Adding/deleting new columns and rows
Step 5:Download and re-upload checklists
Checklists can be downloaded in Excel format, retaining all updates made within the VDR.
New versions of the checklist can be re-uploaded at any time by users with Edit permissions for that specific checklist.
Editing permissions
To amend permissions already set-up, click on the groups you wish to edit. You can find these in the top right of the screen, next to the Share button.
A model will pop up displaying all the participants with access and their relevant permissions.
Here you can select from a group’s corresponding permission dropdown. The changes are applied and saved automatically.
Activity log and checklist actions
Every action related to the checklist is tracked, including:
Uploading and downloading checklists.
Edits made (specific changes are not detailed).
Sharing or modifying permissions for the checklist.
This ensures complete transparency and accountability during the due diligence process.
Why use the VDR checklist feature?
This feature reduces inefficiencies and frustrations commonly experienced in M&A workflows. By centralizing and simplifying checklist management, it improves communication, minimizes errors, and ensures all stakeholders are aligned.