Streamline Commercial, Legal, and Operational Due Investigation
Virtual data rooms have transformed M&A, reducing the risk that physical documents could be damaged or lost. They also help speed up the due diligence process while encouraging value creation. The most important thing to ensure that your VDR can provide these benefits is to set it up correctly by selecting the best provider and establishing a proper folder structure and inviting authorized users. Once the VDR is ready, search functions will transform into your digital scout tool, finding information within complicated folder structures with a laser-like precision.
Organise your VDR by the different categories of investment due diligence like governance, finance, intellectual property and human resources, as well as real estate, and litigation. Sub-folders can be used to organize your data and to create an index that is simple to use.
Be aware that VCs, and other stakeholders with whom you communicate and share documents, expect your documents to be in an appropriate order. If you upload an older version, it could damage the confidence of your investors and jeopardize the deal.
Choose a VDR with role-based control (RBAC) for managing permissions for documents. This will stop malicious or accidental actions of individuals who are not authorized.
The VDR should also allow users to download only the data they need. Watermarks, access expiry times and limits on file size can be used to limit the exposure of sensitive information. The VDR should include an extensive audit trail so you know what files each user has seen. This transparency builds trust and accountability between all parties.