Whether you’re preparing for an M&A deal or asset sale, ICO or another type of transaction, the right virtual data room will allow you to share documents in a secure and efficiently while simplifying the procedures. Made by experienced deal makers jobdataroom.com FirmRoom’s VDR features best practices to ensure the quickest and most successful outcomes.

The first step to preparing a virtual data room is to organize files and documents properly. This involves creating a folder hierarchy and labeling items using metadata to help teams to find the information they require. For instance, you can create categories like Accounting, Finance and HR, and then subfolders to separate files according to the type of document, or content and the scope. The virtual data room will be more easy to navigate if you follow consistent naming conventions.

The next step is to establish an effective authentication system for all documents and users. This includes encryption to protect data in transit and in storage and also requiring two-factor authentication for all users. To ensure security and compliance, an audit trail that is robust and reliable is also needed to record the logins of users and access to documents. In addition dynamic watermarks may be added to each printed and viewed document page for additional protection.

The final step to prepare an online space is inviting investors to access the information they need. This is typically done by giving each investor an individual login and access rights. Once all the required documents have been uploaded, investors are able to begin conducting due diligence.