Data rooms are used to conduct due diligence on M&A transactions, fundraising or any other type of transaction that requires the sharing of sensitive data. They are a better alternative to email and free file-sharing services. They provide granular permissions as well as security features such encryption, two-factor authentication, and watermarks.
The amount of data required in a due diligence process will depend on the size and complexity of the transaction, but it is vital that all parties have access to the same documents. A central data room with clear folder structures, standardized titles for documents and a master index will make it easier for users to navigate the room and locate the information they require. Combining similar documents into subfolders can also speed up the process of reviewing.
It is essential to highlight the KPIs that are the most relevant and not fill slides with irrelevant data. It is also crucial to avoid sharing non-standard analysis, which can confuse investors and sway their expectations of the company’s growth and health.
It’s also helpful to include an overview slide at the end of each deck, highlighting the main points and the main points you want your audience to take away from the presentation. It will make it easier for an investor to switch between a deeper dive into the numbers as well as the larger overall picture.
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