If you’re looking for funding or planning to sell your company, the process requires sharing important information in an organized environment. A majority of that information is sensitive, such as financial statements as well as intellectual property agreements, legal agreements and research results. It is also important to be capable of responding quickly to inquiries from potential buyers and investors. That is where data rooms come in.
The key to maximising the effectiveness of a data room is knowing what information you should include and how it will assist you in achieving the desired outcome. For example, for an investor presentation, it is important to have a data room that has a complete overview of the company with particular attention paid to key growth drivers and performance indicators. Incorporating these documents will demonstrate to investors secure document management tool that you are well-prepared and focused on the deal you’re trying to get. Including unnecessary or non-standard analyses can be confusing to the viewer and could suggest that you’ve not fully grasped the KPIs that you are focussing on.
Another instance of the use of data rooms is clinical trials. A VDR facilitates efficient storage and retrieval, making it easier to evaluate clinical trials and then approve life-saving medication. Incorporating important documents in the data room such as the study protocol as well as informed consent forms and records of accountability for drugs will speed up the approval process and possibly save lives.
The last point is that a good VDR can make the entire M&A process more efficient as it eliminates the expenses associated with physical document storage, printing, and transportation. It also reduces the amount of time spent in meetings and travel expenses because it allows stakeholders to look over documents online and access them from any location with an internet connection.