Buy-side M&A
A Buy-Side Data Room for Due Diligence
DiligensHub is a buy-side data room for acquirers running due diligence on a target. Collect the seller's documents in a room you control. Then test the story you were told against the records.
The story against the records
Check What the CIM Claims
Signals reads what a CIM or management presentation asserts. Then it checks each claim against the target's own records. A "no material litigation" line beside a dispute on file is flagged, with both pages.
- Claims that something is absent, checked against the records
- Growth claims tested against the reported figures
- Margin swings, falling revenue and cash that doesn't follow earnings
- Customers or suppliers above a set share of the total
Figures and gaps
See Where the Numbers Disagree
Key figures such as revenue and EBITDA are pulled from each document. When two sources disagree, Signals shows both values with their pages. It also lists documents a deal like this should have, but doesn't.
- Tax returns compared with the financial statements
- Financial statements more than 90 days old, marked stale
- Expected documents not found, such as debt agreements or insurance
- A requested year or quarter that never arrived
Assistant and checklist
Ask the Room, Then Close the Checklist
Ask the Assistant which documents mention the target's bank debt. It answers with links to the pages it used. Meanwhile, each file the seller uploads is matched to your diligence checklist.
- Answers that cite the document and page
- The seller's team uploads into folders you choose, even ones it can't browse
- Files and checklist items matched both ways
- Your team's notes in Discussions, kept from the seller
How Buy-Side Diligence Runs in DiligensHub
- 01
Create the Deal
Choose M&A buy-side and your request list template. Give the seller upload access.
- 02
Collect
The seller's files arrive in your folders, numbered and reviewed one at a time.
- 03
Test
Work the Signals list, and ask the Assistant to find what the checklist still needs.
- 04
Decide
Export open signals to CSV for the investment memo, then archive the room.
What a Buyer Needs to Test a Target
| What you need | How DiligensHub does it |
|---|---|
| Claims checked against records | Signals' narrative checks on M&A dealsSignals |
| Figures compared across documents | Key figures pulled from every documentThe 11 checks |
| Answers with sources | Plain-English questions, answered with the pageAsk the data room |
| A checklist matched to the files | Files matched to checklist items as they arriveChecklist matching |
| A room the seller can fill | Upload rights set folder by folderViewing levels |
Buy-Side Due Diligence Questions
- What is buy-side due diligence?
- Buy-side due diligence is the acquirer's review of a target before signing. The buyer checks the financials, contracts, legal position and operations against what the seller has said. A buy-side data room holds the target's documents and the buyer's findings in one place, under the buyer's control.
- What's the difference between a buy-side and a sell-side data room?
- Who runs it. A sell-side room is built by the seller to share with bidders. A buy-side room is run by the acquirer, to collect and test a target's documents. DiligensHub has both deal types, and runs the same M&A checks on each.
- Can AI check a CIM against the target's records?
- Yes, on M&A deals. Signals pulls out what a CIM or presentation asserts, such as "no material litigation" or strong growth. It then compares each claim with the records and reported figures in the room. A conflict appears in Signals with the pages on both sides, for your team to judge.
- Can the seller upload without seeing our folders?
- Yes. Give the seller's permission set upload rights on the folders they fill. Upload works even where a folder is hidden or shows names only. Your team's analysis folders stay hidden from them. Every upload is logged with who did it and when.
- Does the AI Assistant see everything in the room?
- It sees what the person asking can see, and nothing more. Each answer is built from the files that person may open, and cites the document and page. A seller's user can't use it to reach your team's folders. It's on for new deals, and can be switched off.
Related Solutions
Test Your Next Target in DiligensHub
Tell us about the acquisition, and we'll walk you through a buy-side room.