Streamline Commercial, Legal, and Operational Due diligence
Virtual data rooms are revolutionizing M&A by eliminating the possibility of physical document damage or loss while accelerating the due diligence process and encouraging value creation. The key to ensuring your VDR can provide these benefits is to set it up efficiently by choosing the right service as well as establishing the appropriate folder structure and inviting authorized users. Once the VDR is in place, the search capabilities will transform into your digital scout tool, finding details from complex folder structures with a laser-like precision.
You can organize your VDR according to investment due diligence categories, like governance, finance, intellectual property, human resources, real estate and litigation. Sub-folders can help you organize your data and create a user-friendly index.
Keep in mind that VCs and other stakeholders you’re communicating with will expect to see your documents in a specific order. Uploading a document that isn’t up-to-date could undermine the confidence of your investors and jeopardize the possibility of closing.
Choose the VDR that can provide granular role with role-based access control (RBAC) to control the permissions of documents. This will prevent malicious or accidental actions of unauthorized individuals.
The VDR should allow users to download only the information they need. Watermarks, expiry dates and limits on the size of files are all ways to limit the release of sensitive information. The VDR should be equipped with a thorough audit trail so that you can track which files each user has viewed. This transparency builds trust and accountability between all parties.