A virtual data room could be a great way for companies that are preparing to conduct a private placement to share their documents with potential investors. This includes the private documents required to conduct due diligence and conclude a deal. It lets investors gain access to vital information without having travel and minimizes risks by tracking who has viewed what documents for how long.
In a due diligence process, a potential buyer will need to go through the entire variety of documents for business that pertain to the financial health of the business which includes audited reports, tax returns, and balance sheets. A virtual data room can be used to securely keep all of these vital documents in a single location that is simple for potential investors to navigate. Furthermore, the capability to control permissions at the file level, such as editing, viewing, or printing, and to track activity by displaying dynamic notifications and watermarks, help reduce the misuse of data and ensures that confidential information remains protected.
Companies often use virtual datarooms to provide key investor information each quarter or monthly following the close of a deal. This could include detailed reports on financial performance, as well as KPI dashboards that track progress against goals and growth patterns. Companies can easily share this information with investors all over the world by creating folder structures and restricting access to NDAs. Document archiving options and automatic expiration allow old data to be destroyed prior to being accessible to unintentional third party.