A virtual due diligence room allows business professionals to connect remotely to review sensitive documents at a time and location of their preference. In the end, the review process is streamlined and can be completed within less time. This is essential for companies looking to close an M&A transaction and decrease the risk that confidential information could be released to unintentional third parties.
If you are looking to select a data room to conduct due diligence, be sure to first check out the features and prices of the various providers. Many vendors offer free trials that range from a week to the full month. Use these free trials to try out the platform or make mock-ups. This will allow to you check how well the tool you choose will reduce your time, boost your efficiency, decrease costs, and enhance your internal transparency.
Create a clear and logical file structure. Begin by creating the main folders that will correspond with specific types of files, project stages, departments, or data rooms for due diligence levels of confidentiality. Include subfolders within each one of these folders to further organize documents into easily navigable structures. Make sure that you assign each file a corresponding name so that you as well as your coworkers are able to find what they require.
Upload your documents into the virtual data room once you have created the folder structure. Be sure that all the parties required have access to the uploaded data and invite them to participate in the due diligence process. You can also activate advanced rights to ensure that only the appropriate users are able to access specific files. You can also keep track of the actions of all participants by establishing a thorough audit trail that details when and how documents were viewed.