Traditionally the process of preparing for due diligence took lots of time and effort. Auditors would be physically present in the office of the company and look through folder after file of financial documents for several days. Due diligence is an essential element of any transaction. It can be complicated when sensitive data is involved. This procedure can be made simpler and more efficient by using the right software for virtual datarooms.
Selecting a due diligence data room provider can be a challenge due to the fact that different providers offer a variety of pricing models and functionality. Start a free trial of the provider and request for their due diligence checklist. This will help you create a logical file structure prior to time and make sure that you don’t overlook anything crucial.
The selection process should also include a comparison of how different providers can accommodate your specific industry’s requirements for due diligence. This is particularly important in capital raising projects, IPOs and divestiture, where various documents are shared. Deals in the energy industry, for example, often involve the transfer of seismic data as well as well-logs. Renewable energy projects require sharing of plant data.
Choose a virtual data room which has features that facilitate collaboration with teams from all over the globe. It should be able to support common formats of files, and allow seamless uploading and downloads. It should also allow users to connect remotely, monitor the activity of users and provide an audit trail. It should also offer features like remote shredding, 256-bit encryption and automatic watermarking. It should also have a restricted spreadsheet viewing mode, and a detailed access policy.