The majority of people see data rooms as tools for due diligence when they think of mergers and acquisitions where companies share data with each other in a controlled way. Due diligence data rooms are also used by lawyers to plan cases or share information with co-counsels as well as opposing counsel during litigation proceedings. They can even be used by investment bankers to use to securely share information with potential investors or underwriters during capital raises and IPO preparation.
It is essential that all files and documents are uploaded and prepared prior to inviting third parties to join the portal. Often, a time-frame for preparation is required to assist you in organising and upload documentation in a systematic way, free of the pressure of deadlines. Once the due diligence process has been completed users can set granular permissions for access. They can also suspend or revoke access to folders and files at any time.
The structure of a folder in a due diligence dataroom should be logically organized, with a name that is concise and clear for each document or file. A well-organized structure for how to find a comprehensive supplier of data room software the folder can make it easy for users to find the information they’re seeking. Search functions are beneficial for quick access to documents. Certain VDR providers such as FirmRoom offer pre-made diligence folder structure templates that can be uploaded to create a sensible and easy directory for your users.