A virtual dataroom is a platform that allows companies the ability to share and review documents in a safe environment. It is a popular tool for M&A and strategic partnerships. It is essential to determine which information you want to share and make sure that all files are in order before setting up a data space.
Start by creating a file and document structure that is a reflection of your due diligence checklist. Included in this are folders for legal documents and contracts, financial statements, and due diligence documents. Use consistent and clear name conventions and tag files with metadata to ensure that anyone can locate the information quickly. Be sure to upload only the most recent version of every document and remove the older versions from the dataroom.
The next step is to create access groups for each document and file according to who needs what. For instance, the management might require full access to the data room. However, potential investors must be able to access all financial documents (balance sheets and income statements, for instance).
A central repository for all your documentation is essential to a successful deal. It is also crucial to have a solid security system that prevents access by anyone who isn’t authorized. Find a vendor that provides multi-factor authentication user security impersonation, and a configurable session timeout to limit access and safeguard your important information. It is also important to inquire with the VDR vendor about their customer service. You want to be sure that the experts will be available 24/7 to assist you with any questions or concerns that arise.