Data rooms are used to conduct due diligence during M&A transactions, fundraising, or any other business that requires the sharing of sensitive information. They offer a safe alternative to email or free file-sharing services and provide specific permissions and security features like encryption, two-factor authentication, and watermarks.
The amount of information needed during due diligence will differ based on the complexity and size of the transaction, but it is essential that all parties have access the same documents. A central data room with clear folder structure, standard document titles, and an index that is master-like makes it easy for stakeholders and other interested parties to locate information and navigate. The organization of documents into subfolders that are similar can also streamline the review process.
During the presentation of data, it is important to emphasize the most needle-moving KPIs and not overload slides with irrelevant information. It is also crucial to not share non-standard analysis that could confuse investors and mislead their expectations of the company’s growth and health.
It is also helpful to include an overview slide at the end of each deck, highlighting the key points and the main points you want your audience to learn from the presentation. It allows an investor to oscillate between an in-depth look at the numbers and a broader view.