FAQs - Warranty Disclosure Module
Q What is the Warranty Disclosure Schedule Module?
It is normal practice for an investor to ask for directors and or/company warranties in relation to their investment. We have simplified and standardized the process with the creation of a function expansion pack which replicates the British Venture Capital Association (“BVCA”) standard disclosure letter. More information on this module can be found in this article.
At the end of answering questions, click on "View Disclosure Schedule"
Q Is the questionnaire pre-populated?
Yes - some of the answers are pre-populated from sources such as your LinkedIn profile and Companies House where we are able to access that information.
Q: Do investors require this?
Many investors require this. Understandably they want to know who they are investing in. Putting this into an Expansion Pack module with completeness and risks core speeds things up for everyone.
Q: Do I need to complete this module in order to obtain Diligentsia certification?
This module is not required for Diligentsia bronze certification, but is required for Diligentsia silver and Diligentsia gold certification.
Q How much does this module cost?
This Expansion Pack module costs £500 plus VAT.
Q: Is the Warranty Disclosure Schedule expansion pack included in my Diligentsia Pro subscription?
No - the Warranty Disclosure Schedule expansion pack is extra. But you need to be a Diligentsia Pro subscriber to access it. You can upgrade here.
Q: Can I subscribe to the Warranty Disclosure Schedule expansion pack if I am a Diligentsia Lite subscriber?
No - You can not subscribe to the Directors Questionnaire expansion pack unless you have a Diligentsia Pro subscription. You can find out more about subscriptions here.
Q: Why is the Warranty Disclosure Schedule expansion pack so expensive?
We believe that completion of the Warranty Disclosure module, compared to getting your lawyer to complete it with you represents very good value for money. Particularly since it covers all the member of your team.
Q: Why should I complete this module in advance of investment or exit?
Being prepared in advance of investment or exit will speed up that process. Furthermore, self-auditing in advance of investment or exit gives you a chance to resolve any issues uncovered within your team by the questionnaire. This process would cost you several thousand pounds if managed by a lawyer.
Q: What is a warranty disclosure letter?
A BVCA warranty disclosure letter is a document used in UK mergers and acquisitions (M&A) and private equity transactions. It is provided by the seller to the buyer to qualify or limit the warranties and representations made in the acquisition agreement, disclosing any exceptions or issues. This letter follows guidelines from the British Private Equity and Venture Capital Association (BVCA) to standardize and streamline the M&A process in the UK.
Q: Why do investors need warranty disclosures?
Investors require warranties to understand the risks and legal commitments associated with their investment.
Q: Can Lite users access this module?
No, only Pro subscribers can access it.
Q: Can multiple team members collaborate on this module?
Yes, all team members can contribute.
Q: Does this replace the need for a lawyer?
It offers a cost-effective alternative to working solely with lawyers.
Q: What happens if I make errors in the module?
You can review and amend any entries before final submission.
Q: How long does it take to complete?
The time varies depending on the complexity of your company.
Q: Can I preview the warranty letter before submission?
Yes, you can preview and edit the letter before it is generated.
Q: Is legal advice still necessary after using this module?
Legal advice is recommended but this module can reduce legal costs.
Q: What happens if new risks emerge after the disclosure?
You can update the disclosure to reflect any new developments.
Troubleshooting
Q: Why can’t I access the Warranty Disclosure Module?
A: The module is only available to Diligentsia Pro subscribers. If you’re on the Lite plan, you’ll need to upgrade to Pro to access it.
Q: Why is some information pre-populated incorrectly?
A: Pre-populated data is pulled from external sources like Companies House and LinkedIn. You can manually correct inaccurate fields.
Q: Can I delete a generated warranty disclosure letter?
A: No, letters cannot be deleted, but you can archive them for future reference or create updated versions.
Q: Why does the module cost £500 plus VAT?
A: The module simplifies a complex legal process, reducing reliance on expensive legal services while providing a comprehensive solution.
Q: Can I add custom fields to the disclosure letter?
A: No, the module follows a standardized BVCA format. However, you can provide additional context in the comments section.
Q: What happens if I don’t complete this module for certification?
A: The module is required for Silver and Gold certifications. Without completing it, you can only achieve Bronze certification.
Q: Why can’t Lite subscribers access this module?
A: The module is designed for Pro subscribers, as it integrates advanced features and reporting not available in Lite.
Q: Can I edit the warranty letter after submission?
A: Yes, you can reopen the module and make edits before generating a final version.
Q: How do I ensure the accuracy of my disclosures?
A: Review all sections thoroughly before submission. Engage your legal advisor if necessary for additional accuracy.
Q: What happens if new risks arise after submitting the warranty disclosure?
A: You can update the module to include new risks and regenerate the disclosure letter.
Q: Why isn’t the module updating my risk score?
A: Ensure all fields are completed and saved. The risk score updates in real-time upon completion of the module.
Q: Can I export the warranty disclosure letter?
A: Yes, the letter can be exported as a PDF for sharing with investors or legal advisors.
Q: Does this module replace a lawyer?
A: While it reduces legal costs, legal advice is still recommended for final validation of the disclosures.
Q: Can team members collaborate on the module?
A: Yes, multiple team members with the appropriate permissions can contribute to completing the module.
Q: How long does it typically take to complete the module?
A: Completion time varies depending on the complexity of your company’s operations and data.
Q: Can I reuse a warranty disclosure letter for future transactions?
A: Yes, but ensure you update the letter to reflect any changes in the company’s circumstances.
Q: What if the BVCA format doesn’t cover all my requirements?
A: The module is designed to follow BVCA standards. For additional needs, consult your legal advisor.
Q: How do I contact support for help with the Warranty Disclosure Module?
A: Use the support button on the bottom right of the platform or email support@diligentsia.co.uk for assistance.