When a business needs to share sensitive information with others, a data room system lets users keep the information safe and only reveal the information to those who need to see it. This is typically used in mergers and acquisitions (M&A) transactions, but it can also be used during fundraising, IPOs, legal proceedings and much more. If you’re VDRs: the touchstone of integrity in modern corporate deals thinking of using a data room, it’s essential to know how to use one in order to reap the maximum benefit of your investment.
Decide what files and documents to include. Then, arrange and upload the documents to the data room. Create a clear folder structure, with obvious categories, for example legal documents and financial documents. Create subfolders within each category to further categorize the documents. This will help users find the right document quickly and also avoid confusion.
Consider the types of users who use the data room. Define the roles of users and the degree of access they’ll need. Administrators, for instance, will need full access, whereas investors may only require view-only access.
To make it easier for users, ensure that all file titles and names are descriptive and consistent. Consider adding notes on the background or summary to every document, as this will give the context needed to help users comprehend the file. Create a procedure to eliminate old files from the room in order to prevent security risks.