A data room is an essential tool in a variety of business scenarios that require secure and professional document sharing. It can be used in M&A transactions, financings or legal proceedings IPOs or any other project that call for due diligence procedures with outside parties. To make your virtual data room as effective as possible for these scenarios, you must be sure to set it up properly.
It is essential to decide in the beginning who will be granted access to your documents, and how they’ll utilize them. It is essential to limit the number of users, as you don’t need to allow anyone access to your files. The presence of too many users can be a problem, and you need to find the right balance.
It is then necessary to create a folder hierarchy that makes it simple for people to find information. It’s as simple to use consistent and clear folder names, or by adding specific metadata to each file. Also, keep in mind that certain data might only be relevant to specific individuals. Therefore, it is worth the time to group files together.
Once you’ve completed the structure of the data room, it’s time to upload the actual files. Most platforms allow you to set up permissioning, which permits you to grant different file access levels to different people. For instance, you could grant certain investors access to only view rights while granting full access to others. You can also control downloads so that third-party downloads aren’t able to steal your important data.