Glossary

Due diligence questionnaire

Definition

A due diligence questionnaire (DDQ) is a structured document that a potential customer, investor, or partner sends to verify your claims. On the surface, it’s a checklist. But in enterprise SaaS, it’s more like a stress test, a preview of how your company operates under scrutiny.

The buyer is more than just evaluating your features; they’re asking:

  • Can we trust you with our data?
  • Will your team respond if something breaks?
  • Do you understand the risks of operating at scale?
  • Are you compliant, or just saying so in your pitch deck?

A sloppy or delayed DDQ response can derail a high-value deal.

When do DDQs show up in the sales process?

If you’re selling into enterprise, regulated industries, or strategic accounts, expect a DDQ to surface in these moments:

  • Late-stage sales cycles for 6 or 7-figure contracts
  • During M&A, investment, or partner onboarding
  • When the buyer’s procurement, legal, or IT teams get involved
  • When you’re being audited or re-certified (SOC 2, ISO, HIPAA, etc.)

If you’ve positioned your product well and built internal champions, the DDQ is often the last major hurdle before signature.

What a good DDQ typically covers

Most DDQs span multiple domains and owners across your org. Expect questions in the following areas:

Domain Example questions
Legal Entity structure, contracts, IP ownership
Security Data encryption, access controls, incident response
Compliance Certifications (SOC 2, ISO 27001, GDPR, HIPAA)
Finance Funding history, revenue model, customer billing
Support & SLAs Response times, escalation paths, uptime guarantees
Business continuity Backup systems, disaster recovery, key personnel

If your DDQ responses contradict your sales pitch or website claims, trust erodes fast.

What best-in-class DDQ processes look like

  1. Pre-built response libraries: Your team shouldn’t start from scratch.
  2. Version-controlled content: Especially for technical and compliance answers that evolve.
  3. Role-based reviewers: Legal signs off on contract terms; security validates architecture responses.
  4. AI-powered search and retrieval: Let your proposal or security team pull from a curated library of pre-approved language.

The faster you respond with clarity, the more likely your deal closes on time.

Internal red flags to watch for

If any of these are true, your DDQ process is costing you deals:

  • Security answers live in a shared drive last updated two years ago
  • No one knows who owns the privacy or DPA response section
  • Legal terms are still being reviewed line by line for every new customer
  • Product changes (e.g., new AI capabilities) haven’t been reflected in documentation

In the enterprise world, your DDQ response is often your company’s first impression with legal, IT, or compliance stakeholders. Done well, it builds trust and momentum. Done poorly, it invites delays, or worse, disqualification.

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