Streamline Operational, Legal and Commercial Due Investigation
Virtual data rooms are revolutionizing M&A by eliminating the risk of physical documents getting damaged or lost and speeding up due diligence process and promoting value creation. To ensure that your VDR provides these benefits you must set it up correctly by selecting the best provider and establishing a folder structure that is suitable. It is also important to invite authorized users. Once the VDR is ready, search functions will transform into your digital scout that can find information within complicated folder structures with a laser-like accuracy.
Create your VDR by investment due diligence categories like governance, finances intellectual property HR, real estate, and litigation. Use sub-folders for further organizing your information and creating an index that is easy to use.
Keep in mind that VCs and other stakeholders you’re interacting with will want to see the documents in a certain order. Uploading a document that isn’t up-to-date could undermine the confidence of your investors and jeopardize the deal.
Choose a VDR with role-based control (RBAC) to manage permissions for documents. This will stop malicious or accidental Data Room Management actions from individuals who are not authorized.
The VDR should allow users to download only the data they require. Watermarks, access expiry times and limitations on file size can all be used to limit disclosure of sensitive information. The VDR should have a comprehensive audit trail to ensure that you can track which files each user has seen. This increases trust and accountability among all parties.