How to Set Up a Virtual Data Room

Whether you’re looking to conduct an M&A deal, close a strategic partnership or raise funds for your business, it’s vital to ensure that all of your important documents are readily available to investors who are interested in conducting due diligence. A virtual data room will ensure that you can accomplish this while mitigating the chance of confidential information getting into the wrong hands.

When setting up your VDR there are a few steps that you should follow to make it as efficient as is possible.

Make sure that the information is in the VDR current. Don’t include irrelevant information that could make investors confused and could cause delays, or even kill the deal. Create an index of all the documents in the VDR and keep it updated throughout the entire process to prevent this. This will ensure that the most up-to date information is available to potential investors and that any differences are accounted for.

Organise the VDR subfolders and folders logically to make it easier for users to locate and comprehend what they’re looking at. This can help avoid confusion during the due diligence process, and can improve the user experience and efficiency.

Add a second layer of security to the VDR by the requirement of two-factor verification. This will not only shield against data leaks by hackers, but also prevent them from taking advantage of loopholes in the system and exploiting weaknesses in the security infrastructure. You can also add an extra layer of security by implementing a stealth mode, which hides the users’ activities, and grants them access to the VDR without being detected.

www.thatvdr.com/how-virtual-data-rooms-help-ensure-the-success-of-ma-deals