The main reason for using data rooms is to conduct due diligence in M&A transactions, fundraising or any other transaction that requires the sharing of sensitive information. They are a secure alternative to email and free file-sharing services and provide access to granular security features like encryption, two-factor authentication, and watermarks.
The amount of data required during a due diligence process will differ based on the complexity and size of the transaction, but it is crucial that all parties have access the same documents. A central data room that has an organized folder structure along with standard document titles and an index that is master-like makes it easy for stakeholders and other interested parties to find and navigate information. By dividing documents into subfolders which are similar will also streamline the review process.
It is crucial to highlight those KPIs which are the most relevant and not overload slides with irrelevant data. It is also crucial to avoid sharing non-standard analyses that could make investors confused and can mislead their expectations of the company’s growth https://ethiquedesorganisations.fr/6-reasons-to-use-data-room-for-the-due-diligence-process/ and health.
Include a summary slide each deck to highlight the main aspects and conclusions you want your audience to take from the presentation. Investors can quickly switch between a closer glance at the numbers and an overall view.
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