How to Set Up a Data Room for M&A Due Diligence

Traditionally, firms conducting M&A due diligence shared sensitive documents with many potential buyers simultaneously using physical documents stored in a secure room that was constantly watched by those who were essential to the decision-making process. A virtual data room is an effective instrument to speed up due diligence in an age in which there are more parties interested and shorter timeframes.

When choosing a virtual data room provider, consider how much storage space you’ll require and what kind of files can be uploaded. Look for a data room provider that has an outstanding rating in terms of security, customer reviews and industry certifications. Also, make sure that the software offers the features you require to complete your project.

Establish a clear folder structure that is consistent with the project that you are working on. Label each folder and file to assist users in navigating and find the information they need. If you have multiple documents with the same subject and you want to organize them into subfolders, so that users can easily access the relevant information without having to look through for a lot of data.

Make sure that users have an easy experience through providing an intuitive user interface and easy-to-use collaboration tools. This will help potential partners feel less worried about due diligence process and conclude deals faster. Be sure to provide full technical support if there are any problems with the platform or if the person requires assistance while on the move.