Virtual data room preparation involves an array of steps to ensure that the VDR is capable of being used for due diligence or collaboration. It starts by selecting the right vendor that has an attractive, user-friendly interface that is reflective of the professional image the company would like to present to investors. It also involves establishing an organized file structure including labels, folders and tags. For instance, a finance folder might be structured as “Audited statements” and “Unaudited Statements.” In addition, it is important to think about the types of documents that will be uploaded to the VDR. These are typically private documents of high value to the company or the owner. Virtual data rooms are often utilized in M&A transactions, but they can also be utilized by companies to collaborate with their customers and partners, for instance, engineering firms on construction projects.
The next step is to determine the groups that will require access to the VDR and then granting them appropriate access rights. It’s now time to upload the files to be kept in the data room. Certain VDR providers offer a convenient method to do this using drag-and-drop and bulk upload. They also have integrated indexing and versioning control tools that help to locate documents in the diligence process.
Once the company has completed this task and is ready to invite potential buyers or investors to the VDR. It should consider the amount of flexibility it would like to give users in terms of printing and downloading files, and whether it’s an ideal idea to add dynamic watermarks to stop sensitive information from getting out.