The setting up of virtual data rooms is a significant aspect of the M&A process as it allows companies to share documents easily and speed up due diligence. In addition, it cuts down on a lot of time and money that would have been spent on printing scans, printing, and sending files via email. These cost-saving benefits allow M&A transactions to be completed quicker and the expected synergies can be realized more quickly.

It is important to decide the roles that will be able to access the VDR, and which files they can view. Acquirers, for example, need access to business plans and financial statements to assess the company they are considering buying. Investors should have access only to view certain files. As a result of this, the buyers should be able to access all the files. To further safeguard sensitive files the virtual data rooms should include a watermarking and auditability features to guard against data leaks.

In order to organize the virtual data room, it is essential to use templates for folders and to have a clean and simple directory structure. For instance using an due diligence checklist and including topics and subfolders can assist users in finding the documents they require with less effort. Another beneficial VDR feature is indexing, which labels documents with keywords or metadata that allows you to quickly locate them. VDRs with version control ensure that users have the latest copy of a document.

Additionally, a data room should also have a robust Q&A function that can be used to efficiently manage questions and responses among all parties. This way, administrators can easily respond to new questions and avoid having to send the same information repeatedly.

setting up the virtual data rooms