Due diligence for Operational, Commercial, and Legal Affairs can be made easier.
Virtual data rooms are transforming M&A by decreasing the possibility of physical documents being damaged or lost while accelerating the due diligence process and promoting value creation. The most important thing to ensure that your VDR offers these benefits is to set it up effectively by choosing the best provider as well as establishing the appropriate folder structure and inviting users who are authorized to use it. Once the VDR is set up, the search functionality will be your digital scout and unearth information in the complex folder structures.
Create your VDR by categories for investment due diligence such as governance, finance, intellectual property HR, real estate, and litigation. Create sub-folders to further organize your data and creating an index that is simple to use.
Remember that the VCs and other stakeholders you’re interacting with are likely to require your documents in a particular order. Uploading an outdated version could damage the trust of your investors and could sabotage a deal.
Select the VDR with role-based control (RBAC) to manage permissions for documents. This will protect you from malicious or accidental actions from people who are not authorized.
The VDR should also enable users to download only the information they require. Watermarks, expiry dates, and limit on size of files are ways to limit the release of boardroom functions sensitive information. The VDR should also create an audit trail comprehensive which allows you to view exactly which files each user has reviewed. This transparency increases trust and accountability between all parties.