Streamline Commercial, Legal, and Operational Due diligence
Virtual data rooms have transformed M&A, reducing the risk that physical documents could be damaged or lost. They also help speed up the due diligence process and encourage value creation. To ensure that your VDR has these advantages you must set it up correctly by selecting the best provider and establishing a structure for your folders that is appropriate. You should also invite authorized users. Once the VDR is ready, search functionality will turn into your digital scout tool, finding information within complicated folder structures with a laser-like accuracy.
You can organize your VDR according to the categories of investment due diligence, such as governance, finance, intellectual property, human resources, real estate, and litigation. Use sub-folders to further organize your data and create an easy-to-use index.
Be aware that the VCs and other stakeholders with whom you’re communicating are likely to require your documents in a certain order. Uploading a document that isn’t up-to-date could damage the trust of your investors and jeopardize the terms of a deal.
Choose the VDR that allows granular roles with role-based access control (RBAC) to control document permissions. This will prevent malicious or accidental actions by people who are not authorized.
The VDR should also enable users to download only what they need. Watermarks, access expiry times and limits on file size can be used to limit disclosure of sensitive information. The VDR should also implement a comprehensive audit trail in order to know the exact files each user has viewed. This transparency builds trust and accountability among all parties.