The quicker you set up the data room, the sooner buyers can get started with a due diligence. Not using a data room, or a data room that is not easy to use, could have a detrimental effect on the deal process and speed for yourself or your client. Your organisation will also use a lot of the workday on internal admin and not on the most important task: Strategy and closing deals.
In this blog post, our Client Managers, Nina Felic and Bobo Tiger, will tell you about the smartest and fastest ways to get started with a data room in order to get the best possible outcome.
It’s very important to have a neat and logical layout where you can easily find your way around. We recommend doing the following:
There are usually advisers who help put a good structure in place, but we also have good templates that can be used if you are unsure about where to start.
Have a good plan on how to complete a Q&A. Here are some examples of questions you should ask yourself:
The more complex the process, the more time you should spend thinking about how to carry out the process.
Here are some factors you should think about:
Distribute tasks using our new feature, Task Management. The purchasing team may comprise many different parties, and to get a better overview of where you are in the process, the project manager can now follow which documents have been reviewed and what remains with our new function. The various members also have a good overview of their own tasks.
Read more about Task Management.
Enormous amounts of information are shared when a company is going to be sold or merged and much of this documentation is so sensitive that it cannot be shared with all parties involved in a due diligence. You can therefore create a Clean Room. This is a data room inside a data room, and it’s used to share information with very limited access.
Here’s how a Clean Room works:
Read more about Clean Room
In a due diligence process the information is often very sensitive. It’s therefore very important to have a secure channel for communication for the parties involved. Secure Messaging is a hybrid between chat and email and allows users in the buying or selling team to send messages to each other. You can also attach documentation in conversations, so that you do not send this by email and risk sending to the wrong person.
Read more about Secure Messaging
2FA is an additional security layer used to ensure that only the right users have access to an online account. It’s one of the most effective security measures you can implement and should be considered mandatory for any account that has access to sensitive or business-critical information.
It can be helpful for administrators to retrieve reports with information about what happened during the process before closing the data room.
These reports contain documents on the following:
These reports can be very important in the aftermath of a due diligence process in the event that disputes were to arise regarding which documentation has been shared.
After the process has been completed, most people would like a copy of the content to save it for the future. You can order from us, but it can also be easily retrieved directly from the data room, at no extra cost.
How to export your data room documentation:
The copy accurately reflects the layout of the data room.
To avoid missing out on news and updates, you should set up alerts to see if new information has emerged about the process. If you forget to check the alerts one day, you may miss a question or an important new document.
What do you do?
Our Client Managers have many years of experience with setup and reviews of due diligence processes and are always ready to assist.
Client Managers can help with the following: