A virtual data room can be a great way for companies that are preparing to conduct an private placement to share their documents with potential investors. This includes the private documents needed to complete due diligence and conclude a deal. It also lets investors access important information without having to travel and reduces risk by tracking who is viewing what documents and for how long.
During the due diligence process prospective buyers are required to review all business documents that pertain to the financial health and stability of the company. This includes audited accounts as well as tax returns and balance sheet. A virtual data room can be utilized to securely store all of these essential documents in one location that is simple for potential investors to navigate. Furthermore, the ability to set file-level permissions like printing, editing and viewing and also track the activities of users using dynamic watermarks and notifications, can help prevent the misuse of data and ensure that sensitive information is kept secure.
Companies often use virtual datarooms to give important investor updates monthly or quarterly after a deal has been closed. This can include detailed reports on financial performance, as well as KPI dashboards that display how they are performing against their targets and growth patterns. Companies can share this information effectively with investors across the globe by establishing folder structures and limiting access to NDAs. Document archiving options as well as automatic expiration enable old data to be destroyed before being access by unintentional third parties.