Data rooms are used to conduct due diligence on M&A transactions, fundraising, or any other transaction requiring the sharing of sensitive information. They are a safer alternative to email and file-sharing sites that are free. They provide granular permissions and security features like encryption, two-factor authentication, and watermarks.
The amount of data required during due diligence will differ based on the complexity and size of the transaction, however it is essential that everyone has access to the same documents. A centralized data room with clear folder structures, standardized title of documents, and an index master will make it easier for all stakeholders to navigate and locate the information they require. Grouping documents into subfolders that are similar can also streamline the review process.
When presenting data, it is crucial to emphasize the most needle-moving KPIs and not overflow slides with irrelevant data. It is also crucial to avoid sharing non-standard data that can cause confusion for investors and alter their expectations of the company’s growth and health.
Include a summary slide to each deck to highlight the key elements and conclusions you want your audience to take from the presentation. Investors can effortlessly change between a closer look at the numbers as well as more expansive views.
