Due Diligence for Operational Commercial, and Legal activities can be made easier.
Virtual data rooms are transforming M&A by eliminating the chance of physical documents being damaged or lost and speeding up due diligence process and encouraging value creation. The key to ensuring your VDR provides these advantages is to set it up effectively by selecting the best provider as well as establishing the appropriate folder structure and inviting authorized users. Once the VDR has been set up it can be used as a digital scout to locate information in the complex folder structures.
Organise your VDR by the categories of investment due diligence, such as 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.
Be aware that VCs, and other stakeholders with whom you interact are likely to require your documents to be in a specific order. Uploading an outdated version could damage the trust of your investors and could sabotage the deal.
Select one VDR that has role-based control (RBAC) to manage document permissions. This will prevent unintentional or malicious actions by unauthorised individuals.
The VDR should also allow users to download only what they need. Watermarks, expiry dates, and limitations on file size are all methods to limit the release of sensitive information. The VDR should also set up an audit trail comprehensive which allows you to view exactly what files each person has reviewed. This increases trust and accountability between all parties.
