A virtual data room is a great method of keeping sensitive information together in a single place and with access managed by an administrator. You can upload documents and other files which can be shared with potential investors or the buy-side to review – improving efficiency and speeding up the due diligence and deal-making processes.
A data room is usually used in the due diligence phase of M&A transactions, when both parties review documents that are critical to business and negotiate the terms of the transaction. But, you can use a data room for equity and funding transactions as well as how to create a virtual data room legal proceedings, or any other business transaction where you must share confidential information.
Most data rooms come with a range of templates that you can customize to suit the type of transaction you’re planning to conduct. This makes it simple to make a folder structure with names that are appropriate to the nature of the transaction and make it easy for users to locate what they need quickly. You can create a folder called ‘financial info’ and subfolders for documents like contracts or accounting reports.
In addition to the already-built templates and folder structure, a reliable VDR solution will also provide a set of reporting tools that allow you to track and monitor the use of your data rooms. This is particularly important when your data room has been made available to a third-party, because it gives transparency and accountability around who’s uploaded which document and when. You should therefore choose an online service that provides this sort of reporting with ongoing technical and account management support that is accessible all hours of the day, every day.