If you are looking to raise money or sell your business, sharing critical information is required in a controlled setting. A majority of the information is classified as sensitive. It includes financial statements, legal agreements and intellectual property. It is also important to be able to respond quickly to questions from potential investors and buyers. This is the role of data rooms.
Understanding what information to include and how that can help you achieve the desired result is essential to maximizing the efficiency of your data room. In the case of an investor presentation the use of a dataroom that contains a thorough overview of your business that includes an emphasis on key performance indicators and growth indicators is helpful. These documents will demonstrate to investors that you’re prepared and committed to completing the deal. By presenting non-standard or irrelevant analyses, you can be confusing to the viewer and could indicate that you’ve not grasped the KPIs that you are focussing on.
Another instance of the use of data rooms is in clinical trials. A VDR can be used to streamline organization and retrieval, making it easier to examine clinical trials and approve life-saving drugs. The inclusion of important documents in the data room such as study protocols, informed consent forms, and records of accountability for drugs will accelerate the approval process and possibly save lives.
The last point is that a high-quality VDR helps make the whole M&A process more efficient by eliminating costs related to physical document storage, printing, and transportation. It can also dramatically reduce time spent on meetings as well as travel expenses, by allowing parties to access and review documents online from anywhere with an internet connection.