Diligence settings
Diligence settings define the review baseline for evidence, financial comparisons, and policy-sensitive flags. Set firm-wide defaults under Settings → Diligence and override them in Project settings when the transaction requires a different approach.
These are criteria for reviewing the target and its documents. For example, the MFA setting asks whether the target’s security commitments require MFA; it does not switch on MFA for Colabra users.
Accounting, scope, and jurisdiction
| Setting | What it means |
|---|---|
| Accounting standard | Expected source reporting framework: IFRS, US GAAP, Japan GAAP, or Canada GAAP |
| Reporting basis | Consolidated, standalone, or both |
| As-of baseline | Reference point for date-sensitive review: today or project start date |
| Base currency | Currency for thresholds and comparisons; source amounts retain their own currency |
| Buyer jurisdiction | Acquirer jurisdiction for compliance and exposure review |
| High-scrutiny countries | Countries requiring additional sanctions and exposure attention |
A reporting-basis preference does not itself select or consolidate legal entities. Check the financial evidence scope before comparing results.
Materiality and concentration
| Setting | What to confirm |
|---|---|
| Evidence materiality floor | The item size relevant to this deal’s review |
| Litigation claims floor | The claim value material to follow-up |
| Asset transaction floor | The materiality floor for acquisitions, disposals, and pledges |
| Key customer threshold | A single customer’s share of revenue |
| Key supplier threshold | A single supplier’s share of cost |
| Top 5 customer threshold | Aggregate revenue concentration among the largest five customers |
Monetary thresholds are expressed in the base currency. Percentage thresholds require a supported denominator and comparable period; missing data is not a zero value.
Financial aging and QoE
| Setting | What it controls |
|---|---|
| AR 90+ days trigger | Receivables concentration in the oldest aging bucket |
| AP 90+ days trigger | Payables concentration in the oldest aging bucket |
| AR 90+ delta trigger | Increase in the old-receivables bucket, in percentage points |
| Aging minimum coverage | Required mapped coverage before aging diagnostics are meaningful |
| Cash conversion strong / mixed thresholds | Bands for operating cash flow relative to adjusted EBITDA |
| DSCR strong threshold | Debt-service coverage interpretation alongside the stated covenant |
Use Financial review to understand how evidence, calculations, and buyer adjustments fit together.
Contract and commercial policy
| Setting | Review question |
|---|---|
| Exclusivity policy | How should exclusivity obligations be treated? |
| Standard-form contract posture | How should standard click-through or self-service terms be weighted? |
| Assignment / CoC in standard forms | How should transfer restrictions in standard terms be weighted? |
| Expired agreement posture | How should apparently expired agreements be reviewed at the baseline date? |
| Termination for convenience notice | What minimum notice period is expected? |
| Indemnity cap | What cap is expected relative to enterprise value? |
| Survival period | How long should general representations and warranties survive? |
| Change of control consent | What consent posture should the review use? |
| Pipeline capacity ratio | When does weighted pipeline exceed supported historic capacity? |
An expiry date alone does not establish that a contract has ended. Check renewal, notice, amendment, and termination evidence. A policy threshold likewise does not replace reading the operative clause.
Privacy, security, and insurance criteria
| Setting | What the target’s evidence should establish |
|---|---|
| Data deletion SLA | The window for deleting or returning customer data after termination |
| Require MFA for admin access | Security commitments covering administrative or production access |
| DR test cadence | The recency of disaster recovery testing |
| SOC 2 report max age | The age of the target’s SOC 2 Type II report |
| Require SCC annex completion | Relevant technical-measures and subprocessor annexes |
| Insurance expiry alert | How far ahead of policy expiry to flag follow-up |
For controls on your Colabra workspace, see Workspace administration.
Financial period defaults
Set the required coverage for audited statements, management accounts, interim financials, and the working-capital window. Add the fiscal year-end month when known.
These settings describe the evidence period the review expects. They do not certify that the seller has provided it. Check the actual files and task gap analysis.
Overrides and changes
Only changed fields are saved as project overrides. Reset an override to return that field to the workspace baseline; use the reset-all action only when the entire project should inherit defaults again.
When changing the base currency or material thresholds, review affected comparisons and outputs. Check freshness and refresh the relevant analysis where needed before circulating an updated conclusion.