During the due diligence process of M&A transactions, businesses provide sensitive information to buyers and advisors through secure virtual spaces referred to as investor data rooms. These rooms https://floridavdr.com are usually monitored and secured to ensure that sensitive information does not be accessed by unauthorized parties. Top virtual data room providers provide checklists for due diligence that are ready-to-use to simplify the process of collecting data and ensure that all relevant documents are gathered with care.
Documents that you need to include in your investor data room could differ depending on the circumstances and transaction, but certain documents are critical for every data room:
Legal Information: This includes articles incorporating, intellectual property registrations and employee stock agreements. Also included is the cap table which lists ownership stakes and percentages of your company. Founders can choose to include previous updates to investors to show investors that they take serious the importance of transparency and communication for investors.
Financial Information: This includes historical and projected financial statements and explains assumptions, sources and the rationale behind those projections. Founders can include a roadmap for their product and business plan.
Founders can decide to separate the investor data area and limit access by assigning different user roles. For instance one section could have strategy documents and presentation decks for early stage investors while the second section will contain more in-depth legal documents targeted at more serious investors. This lets them save time by only sharing the documents they require and gives them more control over how sensitive information is shared.