When you’re selling your business or preparing for an investment round, the virtual data room can help keep sensitive data in one location with access granted by the administrator. You can upload documents and other files that can be shared with potential buyers or investors for review – improving efficiency and speeding up due diligence process and the deal-making process.
A data room is usually used in the M&A due diligence process, which involves both parties looking over business-critical documents and negotiation of the conditions of the deal. You can also utilize a Data Room for legal processes, equity and funding transactions, or any other transaction that requires confidential information.
Most data rooms offer various templates that which you can personalize according to the type of transaction you are conducting. This makes it easy to create a folder structure using names that are appropriate to the project and make it easier for users to find the information they require quickly. For instance, you could create a folder with the name ‘financial information’ and subfolders for documents such accounting reports or contracts.
A reliable VDR solution provides a variety of tools for reporting that will help you monitor and track the usage of your data room. This is particularly important when your data room has been made available to a third party because it offers transparency and accountability around who’s uploaded which documents and at what time. Find a service that offers this suite of reports in addition to ongoing technical assistance and account management, typically available 24 hours a day/365 days a year.