In the past due diligence preparation took much time and effort. Auditors would physically be present in the offices of the business and comb through file after folder of financial documents for several days. Due diligence is an essential aspect of any business transaction and it can be especially complicated when sensitive data is involved. With the appropriate software for virtual data rooms however, this procedure can be more efficient and convenient.
It can be difficult to choose the best provider of a data room for due diligence, as they offer different pricing models and functionalities. Start a trial free of the provider and request for their due diligence checklist. This will allow you to establish a systematic file structure and ensure you don’t leave anything important out.
The selection procedure should include a comparison between the different providers’ capability to meet your industry’s specific due diligence requirements. This is especially crucial for M&A capital raising, IPOs, and divestiture projects, where a diverse range of documents are typically shared. For example deals in the energy industry typically involve the transfer of seismic data and well logs, while renewable energy projects require sharing plant data.
Choose a virtual data room which has features that help you collaborate with teams from all over the world. It should be compatible with the most common file formats and provide seamless uploading and downloading. It should allow users to connect remotely and track activity. It should also have features such as encryption of 256 bits, remote shredding, and automatic watermarking.