Best Practices for Virtual Data Room Preparation

Whether you’re preparing for an M&A deal or asset sale, ICO or other type of transaction, the appropriate virtual data room allows you to share documents in a secure and efficiently while simplifying the procedures. Made by experienced deal makers FirmRoom’s VDR features best practices for ensuring the fastest and most efficient results.

The first step to creating a virtual data room is to organize files and documents properly. This includes creating a hierarchy of folders and labeling the items with metadata to make it easier for teams to find the information they require. For instance, you can create categories like Accounting, Finance and HR virtual data room preparation and subfolders that divide files based on the type of document or the content and scope. Utilizing consistent naming conventions and regular updates to the structure will help teams navigate the virtual data room.

The next step is implementing an efficient authentication system for all documents and users. It is vital to secure information both in transit and when it is in rest. All users should be required to use two-factor authentication. For security and compliance, a solid audit trail is also necessary to track all logins by users and access to documents. Additionally dynamic watermarks may be applied to every printed and viewed document page to provide additional security.

The final step to prepare an online room is inviting investors to access the data they require. This is typically accomplished by giving each investor an individual login that grants access rights. Investors can begin due diligence after uploading the necessary documents.