Streamline Operational, Legal and Commercial Due Investigation

Virtual data rooms are changing M&A by decreasing the chance of physical document damage or loss while speeding up the due diligence process and promoting value creation. To ensure that your VDR can provide these benefits, you must set it up properly by selecting the best provider and establishing a folder structure that is suitable. You should also invite authorized users. Once the VDR is set up it will become your digital scout that will find information in the complex folder structures.

You can organize your VDR by investment due diligence categories, like governance finance, intellectual property and human resources, as well as real estate, and litigation. Use sub-folders for further organizing your data and establishing an index that is simple to use.

Remember that VCs and other stakeholders with whom you’re communicating will want to see your documents in a certain order. If you upload an outdated document, it could undermine the confidence of your boardroom functions investors and jeopardize the possibility of closing.

Choose an VDR that supports granular roles with role-based access control (RBAC) to manage document permissions. This will protect you from accidental or malicious actions by unauthorised individuals.

The VDR should allow users to only download the information they need. Watermarks, access expiry and file size restrictions can all be employed to limit the exposure of sensitive information. The VDR should also create an audit trail that is comprehensive that allows you to see exactly what files each user has viewed. This visibility builds trust and accountability between all parties.