Companies attempting to optimize the commercialization of their assets have a daunting task. Their challenges range from deducing the correct value of their assets to preparing to negotiate and present data to promising customers or partners. They can solve a few of these challenges with the help of a virtual data room (VDR).
A virtual data room is ideal for running this process smoothly. It has features that save time, minimize risks, and keep your documents secure. This facilitates the speedy completion of a successful deal. Any business that wants to share and secure its information needs to have a VDR. Below is a list of steps on how to set up the perfect VDR:
Step 1: Find a Data Room Provider
Before starting your document diligence, you need to choose a virtual data room provider. Since there are many data providers, you should research the pros and cons before picking one that stands out. You can check on the following features to see which one best meets your team’s needs:
- Price: Choose a data room provider that charges fair prices.
- Data Storage: You should be conversant with the total amount of storage available to store your files—the more space, the better.
- Auditability: This helps you to know who is looking at the files and for how long. This is very helpful when determining which potential partner to consider.
- Security: The VDR should have a series of security features. They ensure that your data is secure and safe from landing in unwanted hands.
- Easy to Use: VDR should be simple and easy to set up to save time.
Once you have chosen the data provider, proceed to the next step.
Step 2: Decide Which Documents to Upload to The Virtual Data Room
Depending on what you want to use in the virtual data room, you will determine which documents to place.
Step 3: Determine the Data Room Structure
Organizing the data in the VDR makes the process of due diligence and audits fast and more effortless. While creating a cohesive data folder, you should consider the following:
- Have a clear naming system.
- Use folders to classify files in the proper order.
- Update the virtual data room regularly to ensure it has the correct documents.
Step 4: Upload the Data Files
While uploading the files to your data room, you should ensure that they are named appropriately for the user to differentiate them. You should also upload them in a form that is easiest to view.
Step 5: Create Groups and Add Users
Once you are done building your data room, you add users while categorizing them into groups. You can assign the different users their roles.
Step 6: Grant and Monitor Access
You can then allow users to access the documents. Be sure to note the permissions you grant each user.
If your VDR has an audit feature, you can view how frequently a user checks on a particular document and for how long.
Unique Features of an Ideal Virtual Data Room
An ideal VDR can have the following functionality features:
- Access Level: Access level to documents can be granted according to the level of integrity of a partner and the different groups of users.
- Auditability: Another feature of a data room is page-level tracking. This is the ability to see which documents have been accessed, by whom, and for how long. This helps to determine the level of seriousness while looking for potential clients or partners.
- Printing: An ideal VDA can allow or deny which documents will be printed. While printing, the document is watermarked and time-stamped appropriately to deter any unauthorized leaks.
- Downloading: Some data rooms have the extra functionality of allowing or disallowing which document the users can download. Some VDRs can remotely shred the document once it’s downloaded.
Grow Your Brand With a Virtual Data Room
Information sharing is important in every deal-making process, but it is sometimes faced with challenges like unauthorized leaks. These leaks can affect your business adversely, depending on the level of confidentiality of the information leaked.
A virtual data room is the ultimate secure deal room. It provides space for a secure data-sharing process. It helps you instill trust in your company’s brand while you grow its value in the marketplace.