Data rooms are used to conduct due diligence on M&A transactions, fundraising, or any other transactions that require the sharing of sensitive information. They offer a safer alternative to email and file-sharing services that are free. They offer granular permissions and security features, such as encryption, two-factor authenticaiton and watermarks.
The amount of data required during due diligence will vary based on the complexity and size of the transaction, however it is vital that all parties have access to the same documents. A central data room with an organized folder structure along with standard document titles and a master index allows the parties involved and others to find and navigate information. Grouping similar documents together in subfolders can help speed up the review process.
It is essential to highlight those KPIs which are the most relevant and not fill slides with irrelevant data. It is also crucial to avoid sharing non-standard analyses that could confuse investors and mislead their impressions of the company’s growth and health.
Include a summary slide to each deck to highlight the main points and conclusions you would like your audience to learn from the presentation. It will make it easier for an investor to oscillate between improving organizational workflows with Dealroom a deeper dive into the numbers and the broader picture.