The primary reason to use the data room is to conduct due diligence during M&A transactions or fundraising transaction that requires sharing of sensitive information. They are a secure alternative to email and free file-sharing services and provide specific permissions and security features such as encryption, two-factor authentication, and watermarks.
The amount of information needed to conduct due diligence will depend on the size and complexity, however it’s essential that all https://ethiquedesorganisations.fr/6-reasons-to-use-data-room-for-the-due-diligence-process/ parties are able to access the same documents. A central data room with clearly defined folder structures along with standard document titles and a master index allows the parties involved and others to locate information and navigate. The grouping of similar documents in subfolders can also speed up the process of reviewing.
During the presentation of data, it is important to focus on the most needle-moving KPIs, and not overwhelm slides with irrelevant information. It is the same for sharing non-standard analyses which may cause confusion for investors or mislead them regarding the health of the business and growth prospects.
It’s also helpful to include an overview slide at the end of each deck, highlighting the most important points and conclusions you wish the audience to take away from the presentation. It helps an investor to oscillate between deep dives into the numbers and the broader picture.