Streamline Commercial, Legal, and Operational Due Diligence
Virtual data rooms have revolutionized M&A and have reduced the risk that physical documents will VDR due diligence be damaged or lost. They also accelerate the due diligence process while encouraging value creation. The key to ensuring that your VDR offers 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 has been configured the search feature will be your digital scout that will find information in the complex folder structures.
You can organize your VDR by the 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 creating an index that is easy to use.
Remember that VCs, and other stakeholders with whom you interact with, will require your documents to be in a particular order. If you upload an older version, it could undermine your investors’ confidence and could impede the sale.
Select the VDR with role-based control (RBAC) for managing document permissions. This will help prevent accidental or malicious actions by people who are not authorized.
The VDR should also allow users to download only what they need. Watermarks, access expiry times and file size restrictions can all be used to limit exposure of sensitive information. The VDR should also set up an audit trail of all files which allows you to view exactly which files each user has viewed. This visibility builds trust and accountability among all participants.