A financial data room is a central storage of documents and information that is used for due diligence in an M&A deal. It lets buyers access sensitive information without having to download it or give it to third parties which could result in legal issues. It is simple to secure the information you collect during due diligence with specific permissions that are set by the role, folder or document.
Investors are able to view a variety of documents, including business plans, presentations, investor decks as well as statutory accounts, audited financial statements as well as customer lists and contract details, product information and market research information. These documents can assist investors to gain a deeper knowledge of the company’s current financial performance, future prospects and growth potential.
Investors should also go through the employee handbooks, employment contracts, EMI option schemes, and the cap table, which displays the percentage of ownership each investor holds. These documents being easily accessible through a dataroom virtualization tool will impress potential investors and speed up the due diligence process.
Selecting the most suitable investor data room is essential for startups that want to improve their fundraising success. When it comes to impressing potential investors, investing in a solution with a user-friendly interface and features such as brief messaging, comments, and highlighting will give you an edge. A vdr that has detailed audit trails and activity dashboards is also an excellent option for investors because it helps to track the progress of their due diligence projects.