Whether you are preparing for a M&A or asset sale ICO, or any other kind of transaction, the right virtual dataroom can allow you to securely and effectively share documents while simplifying complex processes. Built by experienced deal makers FirmRoom’s VDR offers the most effective practices to ensure the fastest and most efficient results.
The first step in virtual data room preparation is to properly organize files and documents. This includes creating a hierarchy of folders and labeling documents with metadata to help teams to find the information they need. Create categories such as Finance Accounting, Finance, or HR and then create subfolders for files to be divided according to content type, document type or the scope. Making use of consistent naming conventions, and regularly updating the structure will help teams navigate the virtual data room.
A robust authentication mechanism needs to be in place for all users and documents. It is jobdataroom.com essential to secure data both in transit and when it is in rest. All users should be required to utilize two-factor authentication. To ensure security and compliance, a robust audit trail is also needed to record the logins of users and access to documents. For additional protection, dynamic watermarks may be applied to every page of a document that is printed or viewed.
The final step to prepare the virtual data room is to invite investors to access the data they require. This is typically done by giving each investor a unique login with access rights. After the necessary documents have been uploaded, investors can begin conducting due diligence.