Streamline Operational, Legal and Commercial Due Investigation
Virtual data rooms have transformed M&A by reducing the chance that physical documents are damaged or lost. They also accelerate the due diligence process, while also encouraging value creation. To ensure that your VDR provides these benefits, you must set it up properly by selecting the right service and creating a folder structure that is appropriate. It is also important to invite authorized users. Once the VDR is in place, the search functionality will turn into your digital scout that can find information from the complexities of folder structures with a laser-like precision.
Organize your VDR according to categories for investment due diligence, such as governance, finance, intellectual property, human resources, real estate, and litigation. Use sub-folders to further organize your information and create a user-friendly index.
Keep in mind that VCs and other stakeholders you’re interacting with will want to see your documents in a specific order. If you upload an older version, it could damage your investors’ confidence and compromise the deal.
Select the VDR with role-based control (RBAC) for managing permissions for documents. This will stop accidental or malicious actions by individuals who are not authorized.
The VDR should permit users to only download the information they require. Watermarks, expiry dates and limitations on file size are all methods to restrict the release of sensitive information. The VDR should also set up a comprehensive audit trail which allows you to view the exact files each user has reviewed. This visibility builds trust and accountability among all participants.